Most borrowers of a home loan, are just bothered about how the loan is to be prepaid and how quickly they can get the burden off their finances. Most bankers say that one out of every six home loan borrowers does not bother to take back their documents even after repaying the entire loan amount.
It is very important, before you seal the deal, to collect back all your documents that you have handed over to the bank from the time you applied for the loan up till the time it is prepaid or the loan amount is settled. Documents relating to loan papers, title insurance, statement, documents of owner’s coverage, and other contact papers. More importantly, make sure that you receive a no-due certificate/settlement statement from the bank, which states that they are no outstanding amounts to be paid by the borrower on the home loan.
Sometime if the loan amount is of a long tenure, say, 10-15 years, then there is a possibility where you might have forgotten about a bounced cheque or a payment that might have been delayed. In such situations, the banks fine a charge due to which it leads to an outstanding amount of a few thousand rupees. However you may be repaying the principle and the interest amounts, but still you will be defaulted at the end.
There can be chances where your payment on the loan tenure is completed now, that was taken 10-15 years ago. Thinking practically, at that time, all documents were not computerised. So you need to get your bank to follow up with the registrar to get back the required registered documents more importantly the Title of Deeds, since, with the help of this Title of Deeds you will be able to sell your house in future.
This document specifies who is the excat owner of the property enabling you to be the rightfull owner to sell it. Since in many cases, this original deed is pledged for availing a home loan, one must ensure that you get this document back.