If you have recently paid off your two-wheeler loan, one of the most critical steps is to get the hypothecation removed from your vehicle’s registration certificate. To ensure that a successful transition happens, it is important to obtain an NOC (no objection certificate) from your lender.
Why you need No Objection Certificate?
Here are the reasons why it’s mandatory to get a no objection certificate from your lender.
One of the most important factors is that an NOC is a legal document that confirms that you’ve repaid your entire loan amount. Issued by your lender, it also tells that there are no dues pending and confirms that your obligations to the lender have been fulfilled. Once you receive this document, you are legally free from the debt.
Another reason to get your bike loan NOC is that it serves as proof that your lender has no legal claim to your vehicle. Having your NOC also determines that your lender can have no objection if you wish to sell/ transfer ownership of your vehicle. Once you submit the NOC to the regional transport office of your city, your lender’s hypothecation is removed from your registration certificate (RC).
Without an NOC, your lender may still have a lien on the vehicle and could cause issues if you try to sell or transfer ownership. A transfer of ownership may not be legally possible without an NOC.
Obtaining a Bajaj Finance Two-wheeler Loan NOC is a relatively straightforward process. If you’ve closed a two-wheeler loan with us, you’ll receive the loan NOC within 10 business days of loan closure. Your no dues certificate will be sent to your contact address registered in our records.
Please note that your no objection certificate is valid for 90 days from the date of its issuance. Therefore, you must submit your NOC to the regional transport office within this period.
Steps to track NOC for your bike loan
Bajaj Finance also offers the online facility to track the status of your two-wheeler NOC. You can follow these easy steps using our customer portal
- Click on the ‘Sign-in’ button on this page to go to your account.
- Enter your registered mobile number and submit the OTP to sign-in.
- Verify your details using your date of birth and proceed.
- Select your closed two-wheeler loan account from the ‘Your relations’ section.
- Click on the ‘Track NOC’ option from the ‘Quick Actions’ section and find its status.
Importance of NOC certificate for two-wheeler
Proof of loan closure
- A No Objection Certificate (NOC) serves as a formal declaration from the lender that all dues for the two-wheeler loan have been paid off. This document verifies that there are no remaining liabilities, signalling a closed financial obligation with the lender.
- It also prevents any future disputes regarding outstanding payments, ensuring peace of mind for the vehicle owner.
Ease in transferring ownership
- An NOC is crucial for the smooth transfer of ownership when selling a two-wheeler. It indicates that the lender has no further claims on the vehicle, enabling the legal transfer of ownership.
- This certificate assures the buyer that the vehicle is free from encumbrances, making it a reliable asset to purchase.
Requirement for vehicle registration change
- If you plan to move to another state and want to re-register the two-wheeler, an NOC from the current Regional Transport Office (RTO) is necessary. This facilitates a hassle-free registration transfer without any legal hindrances.
- The NOC confirms that there are no legal or financial liabilities on the vehicle, a mandatory step for inter-state transfers.
Avoidance of legal complications
- Having an NOC protects the owner from potential legal issues, as it provides proof that the two-wheeler is not associated with any pending financial obligations. This is especially relevant in situations where authorities may question the vehicle’s financial history.
- In the absence of an NOC, the owner may face legal complications if the lender raises any claims on the vehicle post-loan closure.
Better resale value
- When selling a two-wheeler, possessing an NOC certificate boosts the vehicle's resale value, as it assures the buyer that the bike or scooter is free from any financial liabilities.
- Buyers often prefer vehicles with an NOC, as it minimises the risk of future claims, making the purchase process more secure.
Essential for insurance renewal and claims
- An NOC is often required during the insurance renewal process, especially when there has been a change in ownership or state registration. It proves that the vehicle is free from encumbrances, easing the renewal process.
- Additionally, having an NOC helps in smooth claim processing, as insurers may seek this certificate to ensure there are no outstanding financial claims on the vehicle.
Enhanced financial credibility
- Obtaining an NOC improves the owner’s financial credibility, as it reflects a responsible approach towards clearing debts. This can positively impact the owner’s credit score and borrowing potential for future loans.
A clear NOC assures lenders and buyers alike that the owner has no unresolved financial obligations.
You can also use our digital loan services on Bajaj Finserv app. Download our app today from Play Store/ App Store and track your loan NOC on the go.
