Upon the full repayment of your home loan with LIC Housing Finance Limited (LIC HFL), it is essential to collect the following documents to complete the closure process and ensure your property records are clear and up to date.
DOCUMENTS TO COLLECT AFTER HOME LOAN CLOSURE
- No Dues Certificate (on LIC HFL Letterhead)
- Original Property Documents Submitted at the Time of Loan Sanction
The “No Dues Certificate” issued by LIC HFL is the most critical document to obtain after repaying your home loan. It serves as official confirmation that all outstanding dues have been fully settled, and that LIC HFL no longer holds any claim, right, title, or interest in the mortgaged property.
This certificate also includes key details pertaining to your home loan, such as:
- Loan Account Number
- Name(s) of the Applicant(s)
- List of original property documents returned by LIC HFL
- Property Address
- Signature and Seal of the Authorized Signatory
We have shared a sample “No Dues Certificate” below for your reference.
If you refer to the above No Due Certificate, we deposited sale deed, Encumbrance Certificate and Sale Agreement as security at the time of availing a home loan in April 2013
Although we repaid the full loan amount of Rs. 45 lakhs in 2016, we were unable to collect the property documents from LIC HFL because my client was working abroad at that time.
In February 2024, we finally collected the following documents from LIC HFL and ensured they were in good condition with all pages intact.
- Sale Deed
- Encumbrance Certificate
- Sale Agreement
ABOUT LIEN REMOVAL
Our loan was an equitable mortgage, which means we deposited original property documents with LIC HFL as security. Since it was not registered with the sub-registrar's office, there is no need for lien removal via the registrar.
ADDITIONAL INSIGHTS:
LIC HFL typically does not register the mortgage (via MODT - Memorandum of Deposit of Title Deed) if the loan amount is less than ₹1 crore.
In cases where:
- The loan value exceeds ₹1 crore, or
- There are legal/title issues; LIC HFL registers the loan and provides a Discharge Deed after closure.
If a Discharge Deed is issued, it must be registered at the sub-registrar’s office to remove the lien officially.
POWER OF ATTORNEY & DOCUMENT COLLECTION
Our client, based in Washington, USA, wished to sell his 2BHK flat in Bangalore. However, the original property documents were still with LIC HFL. To retrieve them, he executed a General Power of Attorney (GPA), limited to the purpose of collecting documents from LIC HFL.
Refer to the GPA below
Using this GPA, we collected the documents and couriered them safely to the USA, where the client received them within five working days. Meanwhile, we shared scanned copies of the documents with the prospective buyer for verification.
OUR SERVICES
We assist with:
- Home loan closure coordination
- Document collection from banks and financial institutions
- Lien removal and Discharge Deed registration in Karnataka
Write to us:
- pgnproperties@gmail.com
- WhatsApp: +91-97424 79020