An NOC is a legal document issued by financial institutions
It authenticates payment of all dues in case of loan closure
It is required for several loans including home and business loans
Submitting it to credit bureaus ensures a healthy credit score
A NOC or a No Objection Certificate is an essential legal document issued by an organization, agency or even by individuals stating no objection to the covenants mentioned in the certificate. This document serves many purposes including immigration, general litigation and even employment. Sometimes, it is also referred as a ‘No Dues Certificate’.
In case of loans, it’s a document issued by the lender stating that the borrower has cleared all the dues. Once you have paid off your loan, it’s vital to collect the NOC from your lender. The NOC issued by your lender has:
The NOC also acquits all rights of the lender over the collateral, if any, mortgaged for procuring a loan. Generally, banks, non-banking finance companies (NBFCs) and other financial institutions dispatch the NOC to your address. If you’ve changed your address during the loan serving tenor, ensure it’s updated in the records of your lender.
A no objection certificate gives you the much-needed peace of mind once the loan repayment process is over. The major advantages of this certificate are:
Thus, this simple, yet essential legal document saves you from several possible hassles that may arise in the future regarding loan settlement.
A NOC is required for a myriad of loans. Some of them are:
Additional Read: What is a Home Loan NOC and Why should You get It?
Though most lenders dispatch the NOC to your registered address with them, you must take the onus of receiving the NOC on time.In order to get your NOC:
Note that in case of home loan taken for a registered property, you need to need to submit the NOC copy to the registrar of properties to get the lien of hypothecation removed. If you fail to do so, your lender continues to own the property.
If you misplace your NOC, lodge an FIR. Approach your lender with the FIR copy and documents related to loan requesting for a duplicate NOC. However, obtaining a duplicate NOC may take a little more time. Once you obtain the NOC make sure everything is correct, with the word ‘no objection’ finding a suitable mention.
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