Business Desk – Most people get great relief after paying the last EMI of home loan. But after the loan is over, it can be a big mistake to throw away all the documents related to the bank considering them useless. Even after home loan closure, it is important to keep some documents safe for a long time. These may be needed in case of selling the house, transferring it to someone else's name, taking a loan again or in case of any legal dispute in future.
Property Documents are most important
Keep the original documents related to house ownership in the safest place. These may include Registered Sale Deed, Old Title Documents, Conveyance Deed and other original documents related to the property. These documents show how ownership of property passed from one person to another. These may be needed while selling, transferring the house or taking a loan again on it.
Keep the Home Loan Agreement safe as well
After the loan is repaid, do not separate the Home Loan Agreement and Sanction Letter from the file. These contain information about loan amount, interest rate, EMI, fees, prepayment and other conditions. If in future there is a dispute with the bank regarding any payment or loan terms, these documents can serve as important records.
Don't lose NOC and Loan Closure Letter
After paying the last EMI, it is important to obtain written confirmation from the bank that your loan has been completely closed and there is no outstanding amount. Keep the NOC (No Objection Certificate), Loan Closure Letter or similar document received from the bank safe. This is used to prove in future that the bank loan has been fully repaid.
Not every receipt of EMI, but payment record is necessary
It is not necessary to keep paper receipts of every month's EMI for a long time, but keep payment records like Bank Statement, Loan Statement and Interest Certificate safely. These can help prove that the loan amount and EMI were repaid. Making digital copies of important documents and keeping them in a safe place is also a good option.
Keep the approval documents of the house also
Along with the documents related to the property, keep the documents related to the purchase, construction and possession of the house safe. These may include Approved Plan, Completion Certificate, Occupancy Certificate, Possession Letter and necessary government approvals. These documents can be useful in future to sell the property or to resolve any related questions.
If you have RERA property then these documents are also necessary
If the house has been purchased in a project under RERA, then important documents and records related to the project should also be preserved. These may include necessary documents, approvals and property related records received from the builder. These documents can be useful in case of any dispute or ownership of property in future.
Keep digital backup before throwing away documents.
After the loan is over, organize the documents and keep them in a separate file. Along with the original documents, scanned copies of important documents can also be kept in secure cloud storage, computer or any other reliable digital medium. However, digital copies should not be considered a substitute for original documents—it is important to preserve the original documents only where they are needed.