Know the importance of no dues certificate

Learn why no dues certificate (NDC) is critical and the steps required to download it.
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Know the importance of no dues certificate
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5 min read
15 September 2023

What is a No Dues Certificate?

A No Dues Certificate (NDC) is an official document issued by a lender, employer, or institution to confirm that an individual has cleared all outstanding financial liabilities. In the context of loans, this certificate is granted by a financial institution once a borrower repays the entire loan amount, including interest and any applicable charges. It signifies the end of a borrower’s contractual obligations towards the lender and serves as formal proof that no dues are pending.

This certificate is particularly important after the successful closure of loans such as home loans, personal loans, or vehicle loans. Apart from loans, it is also commonly required when employees resign or retire from an organisation, confirming that they do not owe any pending dues to the company.

The No Dues Certificate plays a crucial role in financial and professional transactions. For example, a clean loan closure backed by an NDC can positively impact a borrower's credit score. In employment scenarios, submission of this certificate is often necessary to obtain relieving letters or final settlement amounts. In essence, an NDC serves as a vital clearance document, safeguarding the interests of both parties and enabling smooth transitions across financial or employment milestones.

Importance of a No Dues Certificate

  • Proof of Loan Closure: It confirms that all EMIs, interest, and charges have been fully paid.
  • Improves Credit Score: Submission of the certificate to credit bureaus can boost your credit profile.
  • Legal Protection: Shields you from future legal or recovery actions by the lender.
  • Essential for Property Clearance: Mandatory for releasing pledged assets like property documents or vehicle RCs.
  • Necessary for Employment Exit: In corporate settings, it facilitates the full and final settlement process.
  • Reduces Risk of Disputes: Serves as documented evidence in case of misunderstandings or disputes.
  • Needed for Future Loan Applications: Aids smooth processing of new loans by proving prior loan closure.
  • Clears Financial History: Helps in maintaining a transparent and organised financial record.
  • Acts as a Trust Symbol: Strengthens credibility in financial and professional dealings.

How to Apply for a No Dues Certificate Online

Applying for a No Dues Certificate online is a streamlined process that can be completed from the comfort of your home. Follow these steps to request your certificate digitally:

Step 1: Visit the official portal

Log in to the official website or mobile application of the concerned bank, financial institution, or organisation.

Step 2: Go to the ‘Loan Details’ or ‘Service Requests’ section

Navigate to the section related to your loan account or employee services where document requests can be placed.

Step 3: Select ‘Request No Dues Certificate’

Find and click on the option that allows you to request a No Dues Certificate or loan closure certificate.

Step 4: Enter required details

Fill in necessary information such as loan account number, customer ID, or employee code as applicable.

Step 5: Upload supporting documents

Attach copies of identity proof, loan closure proof, or resignation acceptance letter if required.

Step 6: Submit the application

Review the details and click on ‘Submit’. A confirmation message or email will be shared upon successful submission.

Step 7: Track the request

Use the tracking ID provided to monitor the status of your request through the portal or app.

Step 8: Download or receive by email

Once approved, the No Dues Certificate will be available for download or will be emailed to your registered address.

Documents Required for No Dues Certificate Application

  • Identity Proof: Aadhaar Card, PAN Card, Passport, or any government-issued ID to verify applicant details.
  • Loan Closure Statement: A document showing the final loan payment and zero outstanding balance.
  • Loan Account Details: Loan account number or customer ID for verification purposes.
  • Application Form: A duly filled request form, available online or at the lender’s office.
  • Payment Receipt (if applicable): Proof of last EMI or any final settlement amount paid.
  • Employment Relieving Letter (for job-related NDCs): If applying through an employer, attach the official relieving document.
  • Authorisation Letter (in case of third-party request): If someone else is applying on your behalf, include an authorisation letter.
  • Contact Details: Updated email ID and mobile number for communication and certificate delivery.

These documents help verify identity and confirm that all dues are settled before issuing the certificate.

Steps to download no dues certificate online through our customer portal

If you have a loan with Bajaj Finance, you can download your NDC in a few easy steps by visiting your account:

  •  Click on the ‘Sign-in’ button on this page to go to our customer portal.
  • Enter your registered mobile number and submit the OTP to sign-in.
  • Verify your details with your date of birth and proceed.
  • Select the loan account for which you want to download the NDC.
  • Find all your documents and click on ‘No Dues Certificate’ to download it.

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You can also download the Bajaj Finserv app from the Play Store/ App Store and download your no dues certificate on the go.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

What is a no dues certificate?

A no dues certificate is an official document issued by a lender or financial institution, confirming that all outstanding debts and obligations have been paid in full by the borrower. It indicates that the borrower owes no further payments and their account is closed.

What is the difference between NOC and no dues certificate?

A no dues certificate confirms that all payments on a loan have been cleared, whereas a NOC (No Objection Certificate) is a broader document indicating that the issuer has no objection to the borrower engaging in a particular activity or transaction, such as transferring a vehicle ownership or property.

How to get a no due certificate from Bajaj Finserv?

To obtain a no dues certificate from Bajaj Finserv, ensure your loan is fully repaid. You can request the certificate through their customer service, by visiting a branch, or via the Bajaj Finserv app or website.

Can I download NOC online?

Yes, many financial institutions, including Bajaj Finserv, allow you to download a NOC online. Log in to your account on the institution’s website or app, locate the relevant loan section, and follow the instructions to download the certificate.

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