What is a loan closure letter?

A loan closure letter is an official document from the lender when you have fully paid off your business loan. It is the confirmation that you paid all owed and closed off that loan. You need to keep this letter somewhere safe because it may matter to you in the future. For example, filing for another loan or if you needed to clear some liens you may have created for the property or assets, as a collateral against your business loan.

In most cases, the letter will indicate your loan account, the date that your loan has closed, and state you repaid everything and closed the account. If you used personal property, equipment or etc. as collateral, the lender will also release it from security and most likely provide you a no-objection certificate (NOC), which will confirm you are free to sell or use your property or asset in any manner you see fit.