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Paying off your EMIs isn’t the only responsibility you will have after availing a personal loan. You also need to understand what an NOC letter is and what role it plays during the 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 timely 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 delves into what is an NOC and how you can obtain it from your lender.
An NOC letter is a 'No Objection Certificate' from a bank upon the closure of your loan. The lender issues an NOC letter stating that all outstanding debts have been paid in full and that no other payments are due on a specific date.
In other words, 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.
Here’s why having an NOC letter is so important -
NOC letters are typically required for secured loans like home loans, car loans, and personal loans. These documents confirm the closure of the loan account, protecting you, the borrower, from future claims by the lender and securing asset ownership.
Typically, once you repay your loan, an NOC letter is sent to your registered address. However, it is not uncommon to overlook this document or miss receiving it due to various reasons. Therefore, if you do not receive the NOC, it is crucial to proactively contact the bank lender and request the document directly.
Below are the steps to get your personal loan NOC
Step 1: Log in to your IDFC FIRST Bank customer portal.
Step 2: Navigate to the 'Statements' tab under 'Closed Loans'.
Step 3: Locate and download the No Objection Certificate (NOC).
Step 1: Compose an email requesting an NOC for your personal loan.
Step 2: Send the email to IDFC FIRST Bank's customer support address.
Step 1: Submit a request letter for your personal loan NOC.
Step 2: Mail the letter to your nearest IDFC FIRST Bank branch.
The following documents are required to obtain an NOC letter:
An NOC letter is a critical document that confirms full repayment of your personal loan. Failing to obtain it could lead to several complicated situations:
If you lose your NOC letter, you must immediately contact your lender and request a duplicate copy. You may have to submit a written application, provide ID proof and share loan details for verification. Make sure that you follow up until you receive your duplicate copy, as the NOC is a crucial document for updating your credit history and preventing future disputes.
An NOC is more than just random paperwork – it is proof that you have fully repaid your loan. Because it plays a key role in maintaining your credit score, you need to make sure you handle right with some quick tips:
An NOC serves as proof of your personal loan’s official closure. This certificate is key in safeguarding you from future liabilities, which is why you need to request for one after completing your loan tenure. IDFC FIRST Bank provides digital access to this document, helping you seamlessly close your loan without any hassles.
You need to contact your lender immediately and raise a request for a duplicate. You might need to submit a written request and provide your ID proof for verification.
Your loan NOC should mention your name, loan account number, type of loan, and confirmation of full repayment.
The first NOC is typically issues free of charge. However, a duplicate NOC may incur nominal fees.
Once your loan is marked close and your NOC is issued, it could positively impact your credit score over time.
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.