What is Loan NOC and What are Its Benefits?

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:

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

LLoans that Require a NOC Letter

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?

How to Get your Loan NOC Letter?

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.

What to Do if You Misplace your NOC Document?

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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