Taking out a personal loan is easier than ever these days.
With just a few taps on your phone, you can compare offers and take a loan that suits your needs. However, managing the loan wisely is just as important, especially once it’s fully paid off.
There are a few key steps you must take to ensure your financial future remains secure.
It’s common to feel relieved once the EMI payments end, thinking everything is over.
But skipping important steps after closing the loan can cause problems later. Here’s what you need to do after repaying your personal loan.
1. Obtain an NOC (No-Objection Certificate)
An NOC confirms that you’ve repaid the loan in full and there’s no remaining balance. This document can help resolve any future disputes or confusion.
Keep it safe, and you may want to save a digital copy. The NOC may also be needed if you apply for a new loan later.
2. Get Your Final Account Statement
Once the loan is paid off, the bank should provide a final statement showing that all EMIs have been cleared.
This statement is important for your records and can also help improve your credit score, which is useful if you need a loan in the future. Be sure to ask the bank for it and keep it safe.
3. Verify Your Last EMI and Interest
Before closing your loan, double-check that the last EMI and interest calculations are correct, especially if you made a payment through a “pay later” option or cheque.
Be mindful of the clearance time and interest charges to avoid penalties.
4. Retrieve Original Documents
Make sure to get back all the original documents you submitted to the bank when you took out the loan.
Have a list of these documents and check that you receive everything. It’s best to collect them in person from the bank.
5. Withdraw Post-Dated Cheques
If you provided post-dated cheques as security at the time of the loan, they should be returned to you once the loan is paid off. Make sure to get them back to prevent misuse.
6. Check Your Credit Report
Your credit score should improve once the loan is closed, but this only happens if the bank or financial institution updates your information with the credit bureau.
If the update is missing, contact the credit bureau to have it corrected. If necessary, you can file a complaint, and the issue will be verified and fixed.
How to Get an Instant Personal Loan up to ₹50 Lakh
If you’re looking for a personal loan, you can use the Moneycontrol app or website to compare the best offers.
With a 100% digital process, you can get a loan of up to ₹50 lakh from top lenders. Just follow these three steps:
Enter your personal information.
Complete the KYC process.
Set up your EMI repayment.
