A No Objection Certificate (NOC) is an official document issued by a lender, such as Bajaj Finserv, after you have fully repaid your loan. It certifies that the lender has no outstanding claims against you. For unsecured loans, where no collateral is involved, the NOC serves as a confirmation that you have fulfilled all financial obligations tied to the loan.
Why is an NOC important?
- Proof of loan closure: The NOC acts as a formal acknowledgment that your loan account is settled.
- Credit score improvement: Having a NOC ensures that your loan closure is accurately reflected in your credit report, which can positively impact your credit score.
- Future financial transactions: Whether you are applying for new loans or refinancing existing ones, an NOC assures lenders that you have a clean repayment history.
- Legal protection: The NOC protects you from any future disputes or claims regarding the loan.