Jagoinvestor

September 11, 2014

Why you should collect NOC (No Objection Certificate) once your loan is complete ?

Once you pay off your loan, a big responsibility is off your mind and you feel relaxed. Its a moment where you do not want any further run around and want to now move on to other things in life.

And this is exactly why most of the loan customer do not collect a document called “NOC” or “No Objection Certificate” from their lender and it can get them into trouble later in life. At some places you will hear the word “No Dues Certificate” , but generally most of the executives in real life use the word “NOC” only

Read the incident below to understand its importance

importance of NOC No objection certificate

What is NO Objection Certificate (NOC) ?

With reference to loans, An NOC or No Objection Certificate is a legal document provided by the lender which states that the loan has been complete and their is no outstanding to be paid by the customer as on a specific date. Whenever a person pays off a loan, its important to take this NOC document from your lender.

How to get the NOC ?

Generally, all the lenders dispatch the NOC document to your registered address once your loan is complete. However at times, people do not pay attention to it and loose out on it for some or the other reason. Also if the registered address with lender is your old address (suppose you changed the address in between the loan), then also you will miss the NOC document.

So if you do not get the NOC, better contact your lender and ask for it specifically.

What kind of problems can happen if you dont have NOC ?

A lot of people think that just because the EMI’s are paid off fully, the job is done. However its extremelly important to have a legal document with you which clearly states that you do not owe anything more to then lender.

This way you are protected legally and if someone claims later in life that you owe more to the lender, you can produce the NOC if required. I would like you to have a look at the incident below which create some issue for one of the loan customer, who had paid off the loan, but didnt have the NOC with him

Hi Manish,

I have taken a personal loan from Bajaj Finance in the year 2004. All along, I have been thinking that I have paid the loan. To this effect, Cibil report also says, there is no balance outstanding and the account is closed on 31.12.2008. I don’t have NOC.

Today, I have received a call from a Lawyer saying that he has a summons to arrest me and I need to pay the balance amount of Rs.3750/- and that too I need to pay before 3 pm.

Could you please responds me as to what should I do. My question is will he really have Summons or just he is threatening. I can pay, but he is asking me to pay beofre 3 pm. That’s what I am not able
understand.

Here is another incident where Rahul settled his outstanding credit card dues with Standard Chartered bank and didnt collect the NOC . Then after many years he got a notice from the bank to pay 7.7 lacs. Here are his comments

Its been 12 years now, and I dont have the copy of NOC (or No Dues Certificate) with me. How do I prove my case as SCB isin’t ready to check me credit card history to see where the problem was. They just keep saying “they can’t retreive the information as they have sold those accounts to saha finlease.

And what about the notice they sent me asking me to attend conciliation camp to be held on 11th November?

Read the full incident on our forum

How NOC can help you in future if some problem arise

NOC is a legal document which has weightage . It proves that you really have paid off the loan fully and if there is any confusion, then NOC solves it.

Read these two incidents which were shared on our forum and you will understand its importance

Dear Manish,

Same problem as Sandesh I had with Indus Ind Bank Kolkata recently. They told me that my score is very low so they are not considering me. However, I submitted them my CIBIL Report which clearly says 763. There was an issue with a credit card which I cleared 1 year back.

I submitted them the NOC too. The HR here told me that she has forwarded the details to her central office. Now I am waiting to hear from them.

(Source)

Dear Ravish,

If you have the NOC issued by the bank, saying all dues have been cleared and there is nothing pending, you can get a loan. But as Dear Ashal has suggested file dispute with CIBIL and wait for 2-3 months to get it rectified.

I had the same experience about 3 years back and credit card in question was issued by HSBC. I got the NOC issued by HSBC and applied for loan with HDFC, while submitting the application I informed HDFC about the HSBC story. Later on, HDFC asked for the NOC and cleared my loan.

(Source)

Go get your NOC right now

So now, if you had any loan in past which you have completed and paid off, make sure you have applied for the NOC and keep it safely in your records

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BBR
BBR
3 months ago

I have home loan, crdit card loan in same bank & other banks. due to some financial problems, i settled the credit card loans with other banks. Is it effect on my current bank home loan (they can provide NOC), if i wish to sold my flat to some one.

Gaurav Mahendru
Gaurav Mahendru
1 year ago

I took home loan for buying a property. When I finished paying off the loan, the builder forced me to submit the original NOC to him instead of a photocopy, how do I receover the original copy?

Subhadip Malakar
Subhadip Malakar
2 years ago

Can a credit card exposure impact a personal loan NOC letter? I have a credit card and had a personal loan from the same bank. I have made the full loan amount of the PL account and seeking the NOC letter and to which Bank responded that the NOC is put on hold because of credit card exposure. Now my question is, both the accounts are different and I have paid all the dues against my PL, so is there any rule that is there to hold back my NOC because credit card?

Ripan Borah
Ripan Borah
2 years ago

HI, My HDFC Credit card debt manager gave me a settlement to pay 50000. But he did not close the case as he promised. Now, after 2 years, When I applied for a car loan in SBI the bank refuse my loan for HDFC Credit card Write Off in CIBIL account. After then I paid all the outstanding amount of Rs. 28539.00 against my HDFC Credit card through netbanking and talk to the HDFC Bank Debt recovery deptt and asking them to issue NOC and closure of my credit card and update my CIBIL. After to many times Contacted with customer representative they provide me a NDC on 28.09.2021 and they told me that my CIBIL Status will update within 40 days. Now I have a question that should I eligible for the loan by produce the NDC to SBI before my CIBIL update ?

MANOJKUMAR
MANOJKUMAR
2 years ago

I made one time settlement for education loan in canara bank,they are refusing to pay NOC and marked cibil status as written off.. for OTS, cibil statement should be settled or post(wo) settled right? Due to this im getting problems for applying home loan.

Bhavya
Bhavya
2 years ago

Credit card bills were not sent by the bank, and they incurred interest. After a year, debt manager gave me a settlement on phone to pay 35k. But he did not close the case as he promised. Now, after 4 years, the bank is harassing me again, asking me to pay the outstanding bill. I agreed to pay the difference in the usage money. Meaning, how much ever I have used, I will repay it.

The bank is considering this as a settlement payment, and giving me a SETTLED status on CIBIL score.

The reason for not paying the interest is because they did not send me bills, and their employee gave me unofficial settlement in the first place. And they are also disclosing my personal details to third party which is against customer rights.

I asked them to waive off, and provide me a lesser settlement for the problems/harrasment they have done or to even put the case as CLOSED. And they are denying.

Should I take this to court?

Jatinder singh
Jatinder singh
2 years ago

I had cleared all my outstanding of my cab but finance company had hold my NOC saying that my guaranter had outstanding with them so they had hold my NOC but I had regularly chessing and confirming them that I am not guranter for him he is my guranted me I had not so do any one guide me how to get my NOC is there in law as per I am not guranter do I file case in court for harresment or any other option for this

arun
arun
Reply to  Jatinder singh
2 years ago

please issue legal notice from your advocate to the finance then file a consumer complaint in district consumer forum

Raj Kumar
Raj Kumar
4 years ago

I have purchase an bike which have on financed by first party. Now the final installment paid by first party. Hence I request you, How I get NOC from party party. As per statement of first Party, He say that NOC will be received by him by post. so I request you to suggest whether the first party says is right or not. How many time is spend to get the NOC.

Elavazhagan
Elavazhagan
7 years ago

Hi Manish,
I had closed two credit cards on 2009 with some waiver and not got any NDC/NOC that time. But when I check my cibil report now, those tow cards are saying the status of “settled” [With 0 balance]. Because of this I can’t able to get the housing loan now, even though my cibil score is more than 800. How can I solve this issue.

DEVPARWAR
DEVPARWAR
7 years ago

Hi Manish,

i have taken two wheeler loan in 2012 & i did not pay last 12 emi’s bcz the vehicle condition was very bad. I returned that vehicle to the Financier but the case is not solved till now as i have not taken NOC from them due to which my CIBIL Score is 600 & my loan application rejects every time. Now i am going to take NOC from the Financier & will be submitting to my bank.
After submitting NOC of my pending loan will they provide me loan ?
OR
will my cibil score increase ?

aryav
aryav
7 years ago

i had a one time loan settlement with uco bank where they waived of lacs of rupees and they issued a no objection certificate
In future can they ask for remaining money ?

My Noc document will help me to fight in future ?

Ashish Singh
Ashish Singh
7 years ago

Hi Manish ,

In July 2015, I took loan but i was not able to pay some EMI’s on time but instead of settlement , paid whole amount in Oct 5 2016 and got NOC. But when I applied for credit card on Oct 15 , it got rejected . How can i apply for credit card and what should i do now.

Harish
Harish
7 years ago

Hi Manish,

I’m Harish.. Actually in the 2013 took vehicle loan and cleared it in the year 2014 by paying in EMI.. Also collected the cheques given to the bank.. But at that time, bank didn’t give me NOC.. Also I didn’t knew at that time I have to get that document.. But today 2016 they’ve sent message asking to pay 5k inorder to get NOC.. Is it the correct way for the bank to suddenly after 2yrs without any communications in last 2 years.?

Rahul
Rahul
7 years ago

Hi,

I recently paid off my educational loan from SBI to a private ARC. I have received the NOC for the same as well. But I think my SBI account is still frozen. What steps do i have to take to further? Also we can use the electronic copy of NOC right?

obliged
obliged
7 years ago

hi
i defaulted on my credit card payment and it was fully paid off june 2015 but till today HDFC hasnt removed my name of cibil and neither are issuing a noc letter. i have contacted customer service and they asking me to contact collections and when i call that phone no they never answer. i have also moved to a different state and currently live in mumbai. can someone guide me how i can get this resolved. the credit card was paid in full including all fees as they froze my account for five months and took all the money and were not ready to settle.

skumar
skumar
7 years ago

Hi

I had used HDFC Bank 2 wheeler loan 6 year ago. i have paid all the emi , but haven’t got any NOC till date on my address. Will they provide it after such long time.

Thanks

SRINIVASAN
SRINIVASAN
8 years ago

Hi Manish

I’ve credit card from HDFC bank but still now I’ve not used it. I’m planning to surrender my credit card. Pls suggest what documents should we get from them once the card is surrendered. Thanks in advance

EUGENE
EUGENE
8 years ago

HEY I PAID MY ALL EMI NOW THEY ARE ASKING FOR EXTRA 1259 FOR CHARGES I DONT KNOW COMPANY
BAJAJ AUTO FINANCE

veena
veena
8 years ago

Hi i am veena
today i apply NOC for my land (site) and also request to verify the documents and sample of the documents, so
how much time it will take.

thank you

Sindhu
Sindhu
8 years ago

Hi,

my loan accounts has been closed , and now I want my NOC to get. please let me know the procedure for the same.