I foreclosed my loan, but why is my CIBIL score still low?
Foreclosing a loan is a good move, but when closing a loan you need to ensure several other details for not just your credit score to be updated, but also few other documents that you need to get hold of. When you foreclose, ask for a no objection certificate (NOC) and get the lien on the mortgage removed. Get all the original documents from your lender once you foreclose which will include the title deed as well. Some other precautions include:
■ Make sure that all the original document pages are present in good condition
■ Make sure all the pages are intact in front of the bank official before signing on the acknowledgement of the bank
■ NOC is a must as it is a clearance certificate from the lender and states that the lender does not have any more interest in the property and it’s cleared by the bank after removing all hypothecation
■ Get the lien removed on the property from the Registrar’s office (if lien not created, don’t bother)
■ Seek a credit update, because lenders do not show interest in updating credit bureaus when a loan is repaid as much as when a loan is taken.
■ Seek a legal clearance certificate from lawyer
■ Maintain a detailed track record of the loan repayment and statements