Personal loan is a loan with an expensive interest rate. Obviously, if you have repaid your personal loan despite this, then it is a matter of relief. But after repayment, the work related to personal loan does not end here. Even after repaying the loan, you are required to complete some formalities. There should not be any kind of negligence in this. If you complete all the procedures after closing the loan then it will be easier for you.
no dues certificate
After repaying the personal loan, a No Dues Certificate (NDC) is issued by your bank or finance company. This is one of the most important documents that you should collect immediately after repaying your loan. It is also a wise decision to keep this document with you for a long time. This certificate makes the repayment made by you valid. Without this document, you cannot prove that you have repaid your loan. If you are thinking of taking another loan in the near future, you will need this document to prove that your previous loan has been repaid.
If you are paying the final amount through hard cash, then this document is issued by your bank on the spot. If you are paying through cheque, NEFT or any other mode, the bank will issue the NDC and either send it to your registered address or ask you to collect it from the bank’s branch office.
statement of account
Statement of Account or SOA along with NDC will help you prove that your loan has been fully repaid and repaid on time. This is an optional document often issued by some banks. If your bank offers this document, you should consider obtaining it. You should also pay attention to any discrepancies in your credit score. If you find something wrong, you can use the Statement of Account to make the necessary changes.
Collect unused checks given
According to BankBazaar, if you have some check pages that have not been used, you should collect them as well. The no dues certificate and unused check pages usually mark the last step in the loan closing process.
Check your credit score after loan closing
However, this is just an advice. It is not necessary to check the credit score after the loan closing process is over. It is advisable that you check the scores to ensure that there is no difference in the scores. If there is some possibility of you getting another loan within 1 to 2 years of the closure of the existing loan, then definitely check the credit score.
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