Many people now face funding needs and generally choose to apply for personal loans from banks or online platforms. So, what happens next when these loans are fully repaid? In fact, there are some key steps that we need to address。

What happens when you pay off your personal loan

First, when you have completed all the loans, you need to apply to the bank for a loan settlement certificate. This paper certificate is a formal and well-formulated statement and is essential for subsequent loan applications。

If your mortgage is fully repaid, then you will have to go to the bank to obtain the settlement certificate and the house's other title card. It is then necessary to go to the Housing Authority of your municipality to complete the registration of the mortgage and property rights. If you have an insurance policy at the time of your initial application, you also have to go to the insurance company to pay back the remaining premium。

If you pay off a car loan, you have to go to the bank to obtain a loan settlement certificate and take back the mortgaged car registration certificate. It then takes documents such as identity cards, car permits, driver's permits and car registration certificates and goes to the local garage to complete the release。

In the case of repayment of the principal and interest equivalents, the choice of which would depend primarily on your personal circumstances. Equivalent principal repayment would be more appropriate for those who aspire to pay less interest at the earliest opportunity. However, if you want to share the average of the monthly loan pressure, then the equivalent is more appropriate for you. If you want the liquidity in your hand to generate higher returns, then you better choose the equivalent. And if your plan is to pay back part of the loan in advance later, then the equivalent principal is a better option。

The choice of the principal or principal equivalent shall be based on the individual ' s financial situation and future financial planning. However, not all loans allow for an exchange to be made between repayments of the principal or equivalent and repayments of part of the loans are set at the same level. If you can accept the repayment of the equivalent, you can choose to continue applying for the loan. If this is not acceptable, other loans may be considered。