Closing a loan: how to write an application and close an agreement correctly?
The latest problems of borrowers with Sovcombank and GE Money bank showed that even having paid the loan in full, one day you can get a call from collectors with a message about the debt. And the person has no documents left ... And how to prove his case. The fact is that when closing a loan, you must definitely get a certificate of the absence of debt and close the current account from where you paid the loan ... How to do this, we will describe below.
The procedure for closing a loan is no less important and complex than its registration. However, clients mistakenly believe that making the last payment is evidence of fulfilling all obligations to the bank. The fact is that the credit account continues to operate, even with the full repayment of the debt. Banks deliberately made the closing procedure difficult so as not to lose good statistics on loan accounts. Let us consider in more detail in which cases a loan is closed, what is the closing process, how is it correct and when to write an application for closing a loan?
In what cases can a loan be closed?
The loan is considered closed only when the borrower has paid all his debt in full and wrote an application to close the credit account and disable various services. According to the rules, the bank must automatically close the loan accounts, subject to the full fulfillment of the client's obligations and issue a certificate of absence of debt. Practice shows the opposite: the issuance of certificates is carried out according to a complex mechanism, and the accounts remain valid until the client independently writes an application for their closure.
Loan closing process.
The procedure for repaying a loan and closing an account is as follows:
- The client makes the last payment (or repays the loan ahead of schedule).
Read also: - The next day, after the date of debiting the payment, the client comes to the bank branch and writes an application for closing the credit account and issuing a certificate of full repayment of the debt. The certificate must indicate that the creditor has no material claims against the client, as of the date XX.XX.XXXX, the client has fully fulfilled his obligations to the bank, and the credit account will be closed on this basis.
- A bank employee checks the status of the account for the presence of arrears, disables services that have been connected to the account (for example, SMS notification of the transfer of money, account maintenance, etc.) and issues the necessary certificate. If the additional services are not disabled, then after a while the bank may present the client with an invoice for a round sum. The result is disastrous - a damaged credit history, even with a properly paid loan.
It is worth knowing about such nuances:
- A certificate of absence of debt can be issued only after a certain period, for example, three days after the account is closed (some banks set this period at 30 or 45 days).
- It is better for the client to demand that it bear the seal of the banking institution with the signatures of authorized persons. Some banks make issuance of such a certificate paid, for example, at VTB 24 it will cost 300 rubles.
- It is better to hand over a credit card, which banks often issue to a loan account, and write an application to close it.
The consequences of an improperly closed loan can be negative:
- Even the repaid loan will be considered valid, which will negatively affect the decision to issue a new loan.
- Another bank, upon requesting the BCI, can see that the client has several open contracts. He will not find out what the matter is and will simply refuse to provide a loan.
- A situation may arise when the payment was received at the wrong time due to a technical failure. Requesting a certificate of full repayment of the debt can quickly solve the problem and avoid fines and penalties.
If you think that you closed the loan correctly, then it is important to check your credit history. It should be clean and you shouldn't have any credits on it.
You can order a credit report below
Find out if the bank has spoiled its Credit History (CI)?
Features of the application for closing the loan.
- Such an application is filled in with his own hand by the client of the bank at the branch. If bank employees convince that a verbal order is enough, then you should not believe it.
- An application for closing a credit account can have a standard form, where the client fills in his personal data, or it is printed out by a specialist of their program, where all the necessary fields are already filled in automatically, including the number of the loan agreement, account number and the reason for closing (the reason is the full repayment of the loan).
- It is enough for the client to check the correctness of filling and confirm it with a signature and date.
- The employee puts a stamp and signature on the signed application.
- One copy remains in the bank, another copy (or a certified copy of the first one) must be taken by the client.
- Usually, the very next day, when the account is closed, you can come up for a certificate of full repayment.
Closing the mortgage
If we consider a mortgage with equity participation, then in addition to closing credit accounts, there are a number of procedures associated with obtaining ownership of an apartment.
The fact is that until the full payment of the mortgage, your apartment belongs to the bank. He has a mortgage on your apartment. Also in the registration chamber a contract of equity participation with encumbrances is registered. This means that you cannot sell the apartment before the loan is paid off with the consent of the bank.
Let's outline the steps you need to take to close the mortgage agreement.
- Pay at the bank - fully pay off or repay the mortgage ahead of schedule
- Write an application and close the current account from which the loan was paid
- Receive from the bank the documents required to obtain a mortgage. This is usually a certificate of full early repayment of the loan.
- Apply with these documents to the mortgage department (for example, in the case of VTB24) and request a mortgage. You can write a letter and attach copies of documents.
- After the mortgage is ready, obtain the mortgage and go to the registration office. Also, they may require a certificate of full repayment, a copy of the loan agreement, a past certificate with encumbrances. It is better to clarify what documents are needed at the registration chamber.
- In the registration chamber, remove the encumbrance and obtain a certificate of ownership without encumbrance.
Thus, you need to close any loan correctly. It is worth taking this matter as seriously as when the loan was issued. This will allow you to avoid bad credit history, and in case of claims from the bank, you can present the issued certificates and prove your case.