5 Important Documents You MUST Collect from the Bank After Closing Your Loan
5 Important Documents You MUST Collect from the Bank After Closing Your Loan
Ensuring your rights are secure and records are updated after loan repaymentPaying off a loan is a big relief, but the process doesn’t end with your final EMI. To fully settle the matter, you need to collect certain documents from the bank. These papers are proof that the loan has been closed, your collateral is free from the bank’s claim, and your financial records are clear. Missing out on any of them could create legal or credit issues in the future.
Here are the five essential documents you must collect after closing your loan:
- Loan Closure Statement
- Confirms that your loan account has been fully settled.
- Shows a zero outstanding balance.
- Serves as an official record in case of future disputes.
- Original Property Documents
- Includes the Sale Deed, Title Deed, Loan Agreement, or any papers pledged with the bank.
- Proves your complete ownership of the property.
- Must be carefully checked to ensure all originals are returned.
- No Objection Certificate (NOC) / No Dues Certificate (NDC)
- A formal declaration by the bank stating it has no further claims.
- Certifies that the loan is closed without dues.
- Often required when selling or transferring property in the future.
- Lien Release Document / Hypothecation Removal
- Applicable to secured loans (home loans, car loans, etc.).
- Officially removes the bank’s legal right over your asset.
- For vehicles, you must update the Registration Certificate (RC) to remove hypothecation.
- Updated Credit Report
- Ensures the bank has reported the closure to credit bureaus like CIBIL.
- Verifies that your loan is reflected as “closed” in your credit history.
- Protects your credit score and prevents negative entries.
Collecting these documents is as important as repaying the loan itself. They not only safeguard your ownership but also protect you from future disputes with banks or buyers.
