No Objection Certificate - NOC in Personal Loan

Paying off your EMIs isn’t the only responsibility you will have after availing of a personal loan. Understand what an NOC letter is and what role it plays in loan settlement

If you are thinking of opting for a personal loan, you should know that the entire process takes place in four steps - loan application, loan approval, receiving the instant personal loan, and the punctual settlement of the loan.

Once you are done paying all your EMIs, the final step is collecting your loan No Objection Certificate (NOC). This guide will help you understand everything about the NOC, including how to collect it.

What is an NOC letter?

An NOC letter is a 'No Objection Certificate' from a bank on the closing of your loan. The lender issues an NOC letter that will state that all outstanding debts have been paid in full and that no other payments are due on a specific date. The formal conclusion of your loan repayment cycle is marked by a personal loan NOC letter from your lender. It eliminates any future legal ramifications from your debt.

How and when do I get the No Objection Certificate?

Typically, once you repay your loan, all lenders send the NOC letter to your registered address. Now, some individuals may not always pay attention to it and miss out on it for various reasons. One may also overlook the NOC paperwork if the lender has your old address (for example, if you moved at some point between taking the loan and submitting the NOC). Therefore, if you do not receive the NOC, contact your lender, and directly request it.

IDFC FIRST Bank sends the NOC on your registered mailing address after you have completed paying all your EMIs. You can, alternatively, mail the bank’s customer support team and get a copy. The NOC can also be downloaded from the customer portal. It is available under the ‘Statements’ tab, which is present under ‘Closed Loans.

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. If you are associated with a bank such as IDFC FIRST Bank, you may never need to worry about not receiving your no objection certificate. IDFC FIRST Bank believes in making life easy for their customers. From making the personal loan application process online to ensuring that the NOC letter reaches your doorstep in time, it supports you throughout the journey.

What happens in the absence of an NOC letter?
 

• A no-objection certificate is useful for certifying that all dues have been paid in full. Failure to recover it may result in undesirable situations, such as the lender requiring you to repay debts that have been paid. It is difficult to prove that you have paid your debts in the absence of evidence, so do not put off collecting the necessary documents.
• If you do not have a no-objection certificate, the lending institution may pursue legal action against you, and justifying your claim may become challenging. 
• You must obtain the NOC and alert CIBIL or guarantee that the lending institution does so on your behalf. Not doing so will be seen as a failure on your behalf to return the loan, and it could have a negative influence on your credit score, making it difficult for you to get loans in the future.

Now that you have learned about the no-objection certificate, ensure you remember to collect it and keep it with you at all times. For an online personal loan application process, you can use some of the best lending apps, such as the IDFC FIRST Bank’s Mobile Banking App. Browse our website to know more. You can also reach out to IDFC FIRST bank customer care on 1800 10 888 to know more about the application process.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.