5 Things To Do After Closing A Car Loan

There are still five important things that you need to do even after you have paid off the last car loan EMI. Don't forget to do them to make that car fully your own.

Welcome to FundooMoney, your 24X7 buddy on all your money matters. Congratulations! You have paid the last car loan EMI. But you still have unfinished business. In a short while, we will tell you what you still need to do after closing a car loan. 

Even after completing the repayment of the car loan, there are a few important things that you need to do.

Seek final payment receipt
If you are making a 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 receive all the 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 future problems.

Get the hypothecation removed
The auto loan provider gets the car hypothecated in its favour. Now, 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 stored with your car insurance company. Inform your auto insurance company to remove the hypothecation data from their records as soon as you get the NOC from car loan provider.

We hope you found this useful. Did we miss out something here? Please share with us your thoughts in the comments section so that we and others in this channel can benefit from them. For more such actionable personal finance information, subscribe to our channel. Also, visit our website, download our mobile app and stay connected with us on Instagram, Pinterest and Slideshare.