Happy borrowing!

How to close your bank loan account

Most of the time anxious and relieved borrowers forget how to close their bank loan accounts once all payments are made. Frequently forgotten important aspects:

1 Get back all the documents from the bank which had been submitted at the time of sanction of the loan, such as loan papers, title, insurance, statement, documents and documents of owner’s coverage.
2 No dues certificate or settlement statement ( a certificate from the lender stating that no more loan dues are outstanding).
3 At the last minute banks state that some of the bounced cheques are outstanding and start collecting hefty charges as penalty etc.
4 Often the registration documents are old fashioned and not computerised as now. The bank has to follow up with the Registrar’s office and get the updated records.
5 Without the title of deed, you cannot sell or mortgage the property again and it must be obtained, that too in original. If the lender has not kept the documents safe, that adds to the complications.
6 If these documents are not obtained in time (say two weeks), the bank may start saying that it is too delayed and has to be obtained from the central records and it adds to delay.
7 A little bit of carelessness in closing the loan formalities can land you in hefty charges, unnecessary complicated formalities, or forgoing the rights of the property itself.