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5 Essential Steps After Paying Off Your Home Loan: Securing Your Property

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Due to the growing population, there has been a tremendous demand for houses, leading to a surge in the real estate sector. Apart from cities, apartments are also being constructed in model towns to meet this demand. These flats are accessible through monthly installments facilitated by banks, attracting individuals who migrate to urban areas for work and business opportunities. Those with stable incomes and eligibility can acquire these properties through manageable installments over a repayment period of around 20 years.

After completing the home loan repayment, it is crucial to take certain steps to secure your property rights:

  1. Retrieve Original Documents: Ensure to collect essential documents like the allotment letter, possession letter, sale deed, builder-buyer agreement, and other legal papers that were held as collateral during the loan tenure.
  2. Claim Full Property Rights: The lien on the property, which was granted to the borrower during the loan term, is removed upon full repayment, granting you complete ownership rights.
  3. Obtain No Dues Certificate: A certificate issued by the lending institution upon loan settlement, confirming the full repayment and clearing any outstanding dues on the property, ensuring a clean ownership status.
  4. Acquire Non-Encumbrance Certificate (NEC): This document outlines the property’s financial history, past transactions, and loans, essential for future property transactions like selling, assuring potential buyers of a clear title.
  5. Update Credit Score: Post-loan repayment, updating your credit profile is essential to enhance your credit rating, facilitating easier access to loans in the future.

By following these post-loan steps diligently, you can safeguard your property rights and financial standing effectively.

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