All about Personal Loan NOC Certificate

Table of Contents

Definition of Loan NOC

NOC stands for “no objection certificate.” A loan NOC is a legal document that the lender issues to confirm that all of your outstanding debts have been satisfied and that there are no more debts that need to be paid on a specific date.

A personal loan NOC from your lender signifies the formally ending of your cycle of loan repayment. As a result, it shields you from any potential legal consequences related to your loan.

What is a NOC letter?

A “No Objection Certificate” is provided by a bank at the time your loan closes. The lender provides a NOC letter confirming that all outstanding obligations have been paid in whole and that no more payments are due on the specified date.

What does NOC in Personal Finance mean?

A No Objection Certificate is a legal document that attests to the full repayment of your loan balance. The NOC, sometimes referred to as a “No Dues Certificate,” expressly certifies that all outstanding loan dues have been paid in full.

The personal loan NOC letter is issued by your lender and sent to the address you specify at the conclusion of your loan cycle. It contains significant data, such as loan specifics, your name, the date the loan was paid off, the location of the property, etc.

A NOC verifies that you are no longer obligated to the lender once you have paid off your EMIs and any loan-related fees. This marks the official end of your loan.

What does the Personal Loan NOC say?

In the case of Personal Loans, it is a document that the lender gives verifying that the borrower has paid the entire amount of interest due in addition to any other duties they were obliged to fulfil when repaying the loan. Once the loan has been returned, it is imperative to get the NOC from the lending company that made the original loan. Several significant assertions are frequently included in each NOC for a personal loan. Below is a list of the same.

  1. Your name
  2. Information on the loan
  3. The loan’s closing date
  4. A certification that the whole loan balances—interest included—has been paid.

A Personal Loan NOC letter should be taken into account as waiving all claims to possession of the collateral by the lender if the lender has been provided with the necessary documentation. The Personal Loan NOC certificate is often mailed to the borrower’s address by banks, NBFCs, and other regulated financial institutions. To ensure that the change is recorded, the borrower must make sure to notify the lender if their address changes at any point throughout the payback period.

What are the documents needed for the No Objection Certificate?

The following documents are required to obtain an NOC letter:

  • Identification and proof of address
  • Evidence that you have settled all your loan instalments

Banks and NBFCs often send the NOC letter to the address listed on the loan registration form after you have completed the loan repayment. If you do not get the NOC letter from your bank, then you will have to ask for it to avoid any mishaps. 

How to submit a Loan NOC application

A loan NOC is simple to apply for and obtain. Keep in mind that only after your loan has been repaid can you apply for a loan NOC.

  1. You must let your lender know when all of your instalments have been paid.
  2. You will be needed to provide documentation, including those that attest to your identification, residence, and payment history as well as loan-related paperwork and loan statements.
  3. Your lender will need to see a check and documentation of your identification in order to confirm information like your account number and identity.
  4. After completing the necessary paperwork and formalities, your loan account is closed, and your lender issues you a loan NOC.

Why is getting your Lender’s Loan NOC so important?

Obtaining a loan NOC from your lender is essential for the following reasons:

1. Loan NOC aids in Documentation

A loan NOC is a legal document that certifies that all of your obligations have been fully paid. Inconvenient circumstances might arise if you fail to collect your loan NOC. For instance, your lender can inadvertently request that you pay back the fees you have already paid.

It is challenging to demonstrate that you have paid all of your obligations without any supporting evidence. Therefore, it is advised to get the necessary documentation from your lender, such as a loan NOC.

2. If reported to CIBIL, aids with Future Loans

You must notify CIBIL if the lending firm neglects to collect your loan NOC and notify the credit bureau. Your lender does not have to take this step. If you don’t inform the credit bureau, it may be considered that you haven’t repaid the debt. This can lower your credit rating and make it more difficult for you to get future loans at low interest rates.

3. Keeps your Credit Score Safe

It might seriously damage your creditworthiness if your repayment information is out of date. This makes it challenging for you to obtain a loan in the future. A NOC, on the other hand, has a favourable impact on your credit record. By submitting your loan NOC to credit bureaus like CIBIL or CRISIL, you may update your credit history and guarantee a high credit score.

4. Protects against Legal Penalties

You might run into legal issues if you don’t have the NOC. Lenders have the right to sue you for late payments if there are any inconsistencies. Furthermore, the odds are against you winning the legal battle if you lack any supporting evidence. Even worse, you can be required to repay money that had already paid.

5. Facilitates Balance Transfer

If you want to apply for a balance transfer, you must unquestionably get the NOC from your existing lender. Without a loan NOC, your new lender won’t be able to start the balance transfer process.

What occurs if there is no letter of NOC?

  • A no-objection certificate is helpful for attesting to the fact that all fees have been fully paid. If you don’t get it back, you can find yourself in unpleasant circumstances, such having to pay back obligations that have already been paid by the lender. Without proof, it is difficult to demonstrate that you have paid your bills, therefore don’t wait to gather the required paperwork.
  • The lending institution may take legal action against you if you don’t have a no-objection certificate, and it can be difficult to support your claim.
  • You must either get the NOC and notify CIBIL on your own behalf or ensure that the lending institution does so.
  • If you don’t, it will be assumed that you didn’t repay the loan, which might lower your credit score and make it more challenging for you to obtain loans in the future.


To repay your debt on time, you put a lot of effort into it. Obtaining a loan NOC from your lender, which might help you remain secure in the future, just requires a few easy actions. A good CIBIL score is something you can get and keep by completing loan-related requirements on schedule. Future immediate personal loans from the top lending apps will be available to you at competitive rates thanks to your strong credit score.