Close your home loan early with these tips and tricks

Follow these steps and close your home early
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Close your home loan early with these tips and tricks
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3 min
09-July-2024

Closing a home loan early can offer significant financial benefits, including substantial savings on interest payments and greater financial peace of mind. By paying off your home loan ahead of schedule, you can reduce the overall cost of borrowing and free up funds for other investments or financial goals. Early closure of a home loan eliminates the burden of monthly installments, allowing you to achieve debt-free status sooner. This financial freedom provides security and flexibility, enabling you to plan your finances more effectively and enjoy a more comfortable lifestyle.

How to close your home loan early?

Closing your home loan early, also known as preclosure, involves paying off your loan balance before the end of the agreed term. This can be achieved through various strategies, such as avoiding late payments, making mindful investments, and making part payments to reduce the loan tenure. Avoiding late payments is crucial as it helps maintain a good credit score and avoids additional charges. Making informed investments can generate returns that can be used to pay off your loan sooner. Additionally, making part payments directly towards the principal amount can significantly reduce the loan tenure and interest burden. For assistance, you can always reach out to the lender's Customer Care Number.

Steps to close your home loan early online

Here are the steps to foreclose your loan with Bajaj Finserv online:

  • Log in to your account: Visit the Bajaj Finserv website and log in to your account.
  • Navigate to the loan section: Go to the section that details your home loan.
  • Select foreclosure option: Choose the option to foreclose your loan.
  • Verify details: Ensure all loan details and outstanding amounts are correct.
  • Make payment: Follow the instructions to make the foreclosure payment.
  • Confirm foreclosure: After payment, confirm the foreclosure and request a closure certificate.

For more information, visit the part payment page.

Documents required after foreclosure of home loan

After successfully foreclosing your home loan, you will need the following documents:

  • No objection certificate (noc): Confirms that the lender has no claims against your property.
  • Loan closure certificate: Acknowledges the full repayment and closure of your loan account.
  • Updated CIBIL report: Reflects the closure of the loan in your credit history.
  • Original property documents: Ensure all original property papers are returned by the lender.
  • Preclosure statement: Detailed statement showing the final settlement of your loan.

These documents are essential for maintaining clear records and ensuring that your financial obligations are fully met.

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

Is NOC required for a home loan?
Yes, a No Objection Certificate (NOC) is required for a home loan. It is an essential document provided by the lender once you have fully repaid your home loan. The NOC confirms that the lender has no claims or objections against your property, ensuring that the loan account is closed and the property is free from any encumbrances.

Can I get a home loan statement online?
Yes, you can get a home loan statement online. Most lenders provide an online portal where you can log in using your credentials and access your loan details. By navigating to the relevant section, you can view, download, and print your home loan statement, which includes information about your outstanding balance, repayment history, and other loan details.

How to get Home Loan Agreement Online?
To get a home loan agreement online, visit the lender’s website and log in to your account using your credentials. Navigate to the section related to loan documents or agreements. Select the option to view or download your home loan agreement and save it to your device for your records. If you face any difficulties, you can contact the lender’s customer care for assistance.

Can I pay my home loan online?
Yes, you can pay your home loan online. Most lenders offer multiple online payment options through their websites or mobile apps. You can log in to your account, navigate to the loan payment section, and choose your preferred payment method. This could include internet banking, debit card, credit card, or other digital payment options, ensuring a convenient and hassle-free repayment process.
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