InvestorQ : What happens after one has paid the last EMI on a commercial vehicle loan?
Gauravi Patel made post

What happens after one has paid the last EMI on a commercial vehicle loan?

Answer
image
Anushri Vasa answered.
3 years ago
Follow

After a borrower has made the last payment, he/she gets the lien of the bank or the NBFC on the commercial vehicle loan cancelled; a lien is a right to keep possession of asset belonging to another person until a debt owed by that person is discharged.

The borrower will then be issued a loan closure letter by the bank/ NBFC along with Form 35 and NOC to the RTO for cancelling the lien from the R/C book.

A similar NOC will also be issued to the insurance company requesting for the deletion of their lien from the policy. After all these documents are taken care of, the borrower can take complete charge of his/her commercial vehicle.

1 Views