2 min read
25 May 2021

NOC stands for "No Objection Certificate." It is a legal document issued by an organization, institution, or individual, confirming that they have no objections to the details stated in the certificate. NOCs are commonly used in various contexts, including employment, real estate transactions, and visa applications, to facilitate clearances and approvals.

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’.

NOC Certificate for Loan Closure

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 Certificate from your lender. The no objection certificate issued by your lender has:

Your name

Loan details

Property address

Date of loan closure

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.

Advantages of a NOC letter

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:

  • It’s an authentic document that clears any discrepancies, should it arise in the future regarding loan repayment
  • Submitting the NOC to credit bureaus, such as CIBIL, ensures a healthy credit score
  • It prevents you from the legal hassles that may arise in case there is any confusion regarding loan settlement

Thus, this simple, yet essential legal document saves you from several possible hassles that may arise in the future regarding loan settlement.

Loans that require a NOC letter

A NOC is required for a myriad of loans. Some of them are:

Additional Read: Know the importance of no dues certificate

How to get a no objection certificate?

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:

  • Write to your lender asking for an NOC and return of all the original documents submitted, if any, before procuring the loan.
  • Some issuers require you to have an education loan with them.

Note that in case of a home loan taken for a registered property, you 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.

What to do if you misplace your NOC Certificate?

If you misplace your NOC, lodge an FIR. Approach your lender with the FIR copy and documents related to the loan requesting a duplicate NOC. However, obtaining a duplicate no objection certificate 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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Documents Required to Get No Objection Certificate

To obtain a No Objection Certificate (NOC), the required documents typically include a completed application form, proof of identity (such as a passport or Aadhaar card), proof of address (such as a utility bill or rent agreement), and any relevant supporting documents specific to the request. For instance, if applying for an NOC for property transfer, you may need property ownership documents, sale agreements, and tax receipts. Additionally, a cover letter explaining the purpose of the NOC and any fees associated with the application might be required. Requirements can vary depending on the issuing authority and the context of the NOC.

Instances where NOC is required

A No Objection Certificate (NOC) is required in various situations to demonstrate that no objections exist regarding a certain action. Common instances include property transfers, vehicle sales, bank loans, and starting a new job. In real estate, a NOC from the society or municipality is necessary for transferring ownership. Similarly, banks require NOCs when settling or closing loans. It’s also mandatory in vehicle transfers when changing ownership or registering in another state. A NOC ensures legal clearance, confirming that all parties involved in the transaction or activity have no objections to the process.

What is the validity of a NOC?

The validity of a No Objection Certificate (NOC) typically depends on its purpose and the issuing authority. For instance, NOCs issued for vehicle transfers may remain valid indefinitely until ownership changes, while bank-issued NOCs after loan closure might have a limited validity for a few years. In the context of employment, an NOC's validity usually lasts until the terms of the certificate are fulfilled, such as joining a new organisation. However, it is essential to verify the validity period mentioned in the document itself, as it varies depending on legal and regulatory guidelines.

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Frequently asked questions

How can I clear my loan in advance?

To clear your loan in advance, you should contact your lender and request a foreclosure or prepayment procedure. This involves paying off the outstanding loan balance before the end of the loan tenure. Ensure you understand any prepayment penalties or charges that might apply, as some lenders impose fees for early repayment. Obtain a foreclosure statement from the lender, which details the exact amount to be paid. Once the payment is made, request a loan closure certificate for your records. This will ensure your credit history reflects the loan as fully repaid.

How to check NOC of bike online?

To check the NOC of your bike online, visit the official Parivahan Sewa website of the Ministry of Road Transport and Highways in India. Use the 'Vahan' service by entering your vehicle registration number to access details about your bike, including the NOC status. You may need to log in or create an account to access these details. Alternatively, if your state’s transport department has an online portal, you can check the NOC status there. Ensure you have your bike's registration number and other relevant details handy for a seamless process.

What to do if I lose my NOC certificate?

If you lose your NOC certificate, promptly report the loss to the local police and obtain a copy of the FIR (First Information Report) for official records. Contact the issuing authority, such as the Regional Transport Office (RTO) or the bank, and inform them about the loss. You will need to submit a written application for a duplicate NOC, along with a copy of the FIR and any required identification and vehicle ownership documents. Follow the specific procedures and pay any applicable fees to obtain a duplicate NOC.

What is Duplicate NOC for two-wheelers?

A Duplicate NOC for two-wheelers is a reissued No Objection Certificate provided when the original NOC is lost, stolen, or damaged. To obtain a duplicate NOC, you must file a police report about the loss and apply to the original issuing authority, such as the RTO or financial institution. The application should include the police report, proof of identity, vehicle ownership documents, and a written request detailing the need for a duplicate NOC. Upon verification, the authority will issue a duplicate NOC, ensuring you can proceed with the intended legal or procedural requirements.

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