Kolkata advocate (Advocate) 15 June 2020

Steps to follow during closure of a home loan account

My client wants to close home loan account through settlement... What are the legal steps and documents required to complete the process on behalf of my client?

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Quick Summary

Closing a home loan account, especially through settlement, involves several key steps. You'll need to obtain a signed and stamped settlement document from the bank, retrieve all your original property documents, and secure a No Objection Certificate (NOC) from the bank confirming full repayment. It's also crucial to ensure any lien marks on revenue records are removed. While the bank can provide the most precise guidance on the procedure, these steps are vital for a complete closure.

3 Replies

Real Soul.... (LEGAL) 15 June 2020

Just get the settlement document signed and stamped by bank in original;

Get back all your original documents from bank

Get NOC from the bank against the account numbers with proper names. and mention of repayment in full

Get the lein marks removed from the revenue records if any.

That is all

Kolkata advocate (Advocate) 15 June 2020

If borrower settles with 30% of claimed amount will they mark it as repayment in full?

P. Venu (Advocate) 15 June 2020

The posting suggests no legal issues, but only nitty gritty as to procedure for which the concerned Bank would be in a position to provide the best guidance.