Home loan closure brings relief and increases financial standing since you no longer have to pay a large chunk of money as EMI. But when closing a home loan, you should complete all relevant formalities to keep the procedure smooth and hassle-free. You must keep in mind that paying the last EMI does not close your home loan. You have to get a formal letter from your lender stating that your loan is officially closed. Below are some pointers that will help you closing your home loan successfully.

Collect all your original property papers

Around the time of loan disbursal, after you apply for a home loan, your lender asks you to submit a number of documents that generally vary from one lender to another with some documents being common. When closing the loan, make sure the lender returns all your original documents. Usually all banks submit the following papers:

● Power of Attorney
● Sale deed
● Conveyance deed
● Builder buyer agreement
● Possession letter
● Payment receipts
● Transfer permission
● Tri partite agreement

Get security cheques

Most lenders take security cheques at the time of loan disbursal just in case the borrower defaults on EMIs. Once you close your loan, ensure that you get the security cheques, if any, back and when you do, destroy them for good.

Obtain No Objection Certificate (NOC)

Ask your lender to provide with an NOC as a proof of full and final repayment as well as closure of your home loan. The NOC comes handy for lien removal and also in case, you sell off your property.

Get the lien removed

You can simply go to the registrar office with the NOC from your lender to get the lien removed if your lender delays in doing so. Removing the lien means that lender can no longer keep the possession of property any more.

Update CIBIL

You should request your lender to update your CIBIL information as a successful home loan closure. Without a CIBIL updation, you may face issues if or when you need to avail credit from any financial institution.

Avail other documents

Other than the documents you submitted to the lender at the time of home loan disbursal, you should also ask for other important documents like a complete loan account statement, principal certificate and interest certificate, which are important for filing Income tax returns.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer

The biggest nuisance with applying for a home loan is getting the application rejected. While there are many reasons that lead to a loan disapproval, having a low CIBIL score is a major factor, which makes getting a loan seem impossible. However, there are several ways around the CIBIL score that can get your home loan approved. Here are some alternate ways that may help you to get your home loan approved, irrespective of your CIBIL score.

Consider your income

If your source of income is good enabling you to repay your home loan on time without adding any financial burden on you, you can get your application approved even if your CIBIL score is lower than the required number.

Check your family’s CIBIL score

If you have a bad CIBIL score, you should consider the score of your spouse, either one of your parents and other family members. With a good CIBIL score in the family, you can request them to get your home loan application approved by simply becoming a joint loan holder.

Turn to lenders that offer loans with low CIBIL scores

There are certain NBFCs and HFCs that offer home loans to even individuals with a low credit score. But you may get stuck with comparatively high interest rates on the loan.

Go for loan against collateral

To get a home loan with low CIBIL score, you can even go for collateral security, which includes FDs, shares, assets, etc.. For such loans, lenders don’t bother about the CIBIL score of the applicant.

Getting a low-interest home loan with a CIBIL score of 0 or -1

A CIBIL score of 0 or -1 means you have no credit history that a lender can go through to determine the status of your loan application. You can simply talk to your lender about your creditworthiness and ask for help to get the ball rolling. Show your income proofs, credit appraisals, employer and employment details, etc. to the lender to negotiate the rate of interest.

Once you have secured your home loan with 0 or -1 CIBIL score, make sure that you pay it off on time to get this recorded in your CIBIL report for future reference. Also, keep in mind that foreclosure and arriving at a settlement with the lender is bad for your CIBIL score.

Share to Explore !!

Facebook

Digg

Pinterest

Twitter

Reddit

Linkedin

StumbleUpon

Tumblr

Print

email

Yummly

Buffer