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What documents are to be collected from LIC HFL after the closure of a home loan? Do we have to remove lien

After the closure of home loan, we need to collect these documents:

  • “No Dues Certificate” in LIC HFL letterhead
  • Property documents that were deposited at the time of availing home loan. Some of these documents include Sale Deed, Encumbrance Certificate, Sale Agreement, Loan Agreement and Power of Attorney

No Due Certificate” from LIC HFL is the most important document that should be collected after the repayment of home loan. It states that all the outstanding dues are paid and LIC HFL does not have any claim, rights, title or interest in the property. It also consists of important details related to your home loan, refer to the details below

  • Loan Account number
  • Applicant(s) name
  • List of property documents that LIC HFL returns to you
  • Property address
  • Seal and signature by authorized signatory

Sharing the “No Due 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 home loan in April 2013

Although we repaid the full loan amount of Rs. 45 lakhs in 2016, we were not able to collect the property documents from LIC HFL because I was working in abroad at that time.

In Feb 2024, We collected the below property documents from LIC and ensured that documents were in good condition, with all the pages intact.

  • Sale Deed
  • Encumbrance Certificate
  • Sale Agreement

Our is an equitable loan, which means that we deposited the property documents as security and we didn’t register the loan in registrar’s office. Removal of lien in registrar’s office does not apply to us


Additional information about lien removal:

  • Based on my understanding, LIC HFL does not register the home loan. They just sign the MODT with borrower and collect the property document as security.
  • LIC HFL registers the loan when there is any specific legal issue with property or their lawyer is unable to arrive at the title of documents.
  • For registered loan, LIC HFL hands over “Discharge Deed” along with property documents. we need to register the Discharge Deed in registrar’s office to remove the lien

Additional information about our service:

My client lives in Washington, USA. He wants to sell his 2BHK flat in Bangalore and we found the buyer. When the buyer asked about the property documents for verification, we realized that property documents were with LIC HFL.

From USA, my client gave a General Power of Attorney (GPA) limited to collecting the property documents from LIC HFL. Refer to below GPA

With the above GPA, we collected the documents from LIC HFL and dispatched the original documents to Washington USA on same day. My client received the documents in 5 working days in safe condition.

Meanwhile, we shared the scanned copy of documents with buyer for verification.


We assist in Document collection. Please write to us pgnproperties@gmail.com or Whatsapp to +91- 97424 79020.

Thank you for reading…

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