NOCs decoded: The What, Why and How of an NOC?
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NOCs decoded: The What, Why and How of an NOC?

  • Highlights

  • A No Objection Certificate (NOC) signifies that your loan cycle is complete

  • Improve your credit score with an NOC

  • No NOC can spell financial and legal trouble

  • How to get an NOC online

The life-cycle of a loan broadly consists of two major parts; the first is getting the loan approved and the second is paying back the loan in timely instalments. A third equally important part, usually not highlighted enough, is ensuring that your loan closure formalities are all taken care of.

Bajaj Finserv eliminates the hassles of lengthy processes, forms and the time involved in getting finance by allowing you to track your loan status and get an NOC online. You also get to avail pre-approved offers on a suite of offerings like personal loan, home loan, business loan, EMI finance on different products and other financial services. Simply provide some basic information and get your pre-approved offer.

What is an NOC?

A No Objection Certificate (NOC) is a legal document that explicitly mentions that the borrower has paid all outstanding dues to the lender. Only when you have collected an NOC is your loan cycle truly over.

What happens when you don’t have an NOC?

Not collecting NOC for a loan closure can have both legal and financial implications. Here’s how:

1. Your credit score gets affected

An NOC is as important for your credit score as the timely payment of EMIs. Not having an NOC for a previously taken loan can adversely affect your credit score to the extent that getting a loan approved can become very difficult, and in some cases, impossible.

2. You could incur a financial loss

A failure to collect an NOC from your lender, can result in their asking you for the outstanding amount that you have already paid. In the best-case scenario, this can end up in a lot of confusion and effort on your part to prove that you have paid the amount.

3. You could face a legal difficulty

Without an NOC, you do not have a legal proof that you’ve paid your dues, and the financial firm that lent you the money can actually sue you for not paying on time.

How to get an NOC?

For getting an NOC, the only major prerequisite is that you should have paid all the loan EMIs. Once that is done, the following steps can be followed:

- Write a letter to the lender asking for all the original documents, copies of invoice and an NOC. Usually, this process takes a few working days.

Pro tip:With Bajaj Finserv, the process is still simpler. All you need to do is visit the customer portal, view loan details, select NOC and download the document. You can also choose to have the document forwarded to your email id.

- In case of a home loan on an unregistered property, the procedure remains the same as above.

- If the home loan is on a registered property, then you must accompany a representative of the financial institute to the Registrar of Properties’ office and get the lien removed before collecting the NOC.

- In case of a car loan, the financial firm issues an RTO form (form 35) along with an NOC. Both the documents need to be submitted to the Regional Transport Office and your car insurance company.

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