What is NOC? Full form, Meaning and Benefits

NOC full form is No Objection Certificate. It is a legal document issued by bank or lender after you finish repairing your loan as a confirmation that you have no dues left.

What is NOC?

The full form of NOC is No Objection Certificate. It is an Official Document issued by the bank or financial institution after you finish repaying your loan. It is an official confirmation that you have no dues left, and the organisation has no claim over your asset tied to the loan. It is proof that you have cleared all dues, including principal, interest and additional charges. NOC is also known as Loan Closure Letter or Loan Clearance Certificate. It is required for home loans, car loans, personal loans, business loans, and real estate transactions.

The NOC is very important document that confirms your loan is fully paid, without it, you will have to face legal claims, problems in getting future loans, selling properties, or transferring ownership of assets. After completing your loan repayment you must request No objection certificate to avoid any future issues.

NOC Certificate for Loan Closer

The No objection certificate for loan closer is a legal document that states the borrower has cleared all the dues. Once you have completed your loan it is important to collect the NOC certificate from the financial institution or Bank.

The loan closer letter issued by your lender has details like borrow’s name, loan account number, loan account and type, loan sanction and closer date, confirmation of full repayment and declaration of no outstanding balance.

Benefits of NOC Certificate

A No objection certificate makes you tension-free after your loan repayment is over. Read the advantages of loan closure letter.

• Proof of loan closer: The no objection certificate is approve that your loan is fully repaid.
• Clear property ownership: the registration certificate of your home loan or car/by loan will reflect the lender’s name. So to remove lender’s name NOC is necessary.
• Improve credit score: submitting NOC to credit bureaus (like CIBIL) updates your record and also help to boost your credit score, Ensure for future loan application.
• Eligible for future loans: your clear loan record makes easier to get new loans.
• Prevent legal issues: The organisation cannot claim any pending dues in the future.

How to get NOC Letter for a Loan

To get NOC certificate from the lender you need to follow this simple steps mention below.

• Repay your loan completely: you should must clear all EMIs, interest and penalties (if any).
• Request the NOC from bank: Visit your bank or Financial institution to initiate the request for No Objection Certificate.
• Submit the required documents: some Bank of financial institution may required some documents such as loan account details, identity proof, lone closer confirmation.
• Verified details: once verified the organisation will issue no objection certificate within 7 to 15 working days. Check your name, loan details and confirmation of full repayment.
• Keep it safe: it is advisable to store multiple copies of NOC for future reference.

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Loans that required No Objection Certificate

NOC certificate provide for loans such as

• Home loan
• car loan
• Business loan
• Personal loan
• Loan Against Property (LAP)
• Loan against shares (LAS)

What happens if I lose NOC?

In case you lost your No objection certificate you can follow diseases steps to obtain the duplicate copy:

• If some how you lost your NOC then you have to file and FIR to the nearest police station and approach to your lender with the FIR copy and document required to request a duplicate copy of no objection certificate. You may need some identity proof, loan closure proof and a copy of FIR.
• Obtaining duplicate no objection certificate will take time. After you get your duplicate copy of lone closer letter you must check the details mentioned on the letter and keep itself.

FAQs on No Objection Certificate