Important Things After Loan Repayment – May Be a Loss – If you have taken a home loan or are considering taking a loan then you need to know about this guidance. After taking home loans after completing all its EMI, a document (No Objection Certificate – NOC) must be obtained from the bank or financial institution.
This document is proof that you have repaid your loan amount. The advantage of this is that after paying EMI, the bank or financial institution does not have any claim on your property. It also has many other benefits.
Important Things After Loan Repayment
Bank Cannot Claim Your Property After Taking NOC
After taking a home loan from any bank or financial institution, paying off its full EMI is a great relief. However, after giving EMI you can be sure to complete this important task at once. In fact, after home re-payment, you should get a no-objection certificate.
NOC is a type of certificate that shows that you have repaid a home loan and that you have no liability to the bank or financial institution. Getting a NOC is important in many ways.
It has been seen many times that after repaying the entire EMI of a home loan, some of the bank or financial institution owes you. In such a situation, if you have the No Objection Certificate documents received from the bank or financial institution, then you can avoid this problem.
It is a kind of legal document that states that you do not owe any money to the bank or financial institution. It is also known as the No Dues Certificate.
Credit Score can be Affected
Once you take NOC, it means that your previous loan is closed. If you have not taken a NOC, your previous loan will not be considered completely closed. Your credit score will also be affected. So, you may have some problems when applying for a loan in the future.
It is usually sent to the NOC by a registered post at the customer’s address by the bank or financial institution. Therefore it is important to ensure that your address and mobile number are correct.
You can also Get the Benefit of Insurance.
One of the advantages of NOC is that if you insure the property, the claim will be paid directly to you in any way. In case of non-receipt of No Objection Certificate, the amount of this insurance claim will be paid to the payer.
For these reasons, it is important for you to get a NOC from a bank or financial institution after paying the full EMI of the home loan.