5 Things To Do After Closing A Car Loan

  Author: Naveen Kumar

So, you are now not going to get the monthly reminder on your mobile phone about the impending equated monthly instalment (EMI) of your car loan. You have paid your last car loan EMI. But wait! You still have unfinished business. You still need to take the following five steps to ensure that the car loan becomes history.

Seek final payment receipt If are about to make a car loan prepayment get the receipt of the final outstanding amount and the due date by which the car loan needs to be paid. On making the full payment, get a receipt that states the payment amount and the date of payment.

Reclaim your documents You should get all the car documents submitted at the time of the car loan application together with a No Due Certificate (NDC) or No Objection Certificate (NOC) within 2-3 weeks from the lender. Just in case you don’t receive it, contact the car loan provider, say the bank, and get the documents.

Get your repayment track Ask your lender for the entire repayment track of your auto loan repayment including the final repayment and its date. This will be handy for updating your credit history or any clarifications you might need to provide during any future loan application.

Get hypothecation removed The auto loan provider gets the car hypothecated in its favour. Now, with the loan closure, you need to get this hypothecation removed. Contact your Road Transport Office (RTO) with the NOC or NDC. Submit a request for the removal of the hypothecation. Subsequently, follow up with your RTO to get the updated registration certificate (RC) after removal of hypothecation.

Inform your car insurance company Hypothecation information is also there with your car insurance company. You need to update them about the change. Inform your auto insurance company to remove the hypothecation data from their records as soon as you get the NOC from the car loan provider.

After having taken these important five steps, you can begin to feel truly proud of owning your car.

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