In fact, after paying off the loan, you need to issue a settlement certificate, because this is the proof that you have paid off all your debts. If possible, it is recommended to issue it.

You still need a loan, such as buying a house or a car with a loan. When the bank finds that you have a loan record, you may need to provide a loan settlement certificate.

If you want to borrow from a bank or institution within 1.2 months after repayment, you need to clear the certificate, which will affect your credit information.