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Bank Loan Closure: Not Taking NOC Might Get You In Trouble


Before entering into dealers showroom for buying a vehicle or property, buyer looks at the interest rates that the various banks offer. Getting car, property or personal loan is not difficult these days, but it could get you into trouble later in life and hurt your CIBIL score (credit history). Closure of bank loan is as important as the opening of the loan. A person can easily get loan, pay off the EMI’s (Equated Monthly Installment) and feel relieved that the loan has been paid off but actually this might get the borrower into problems if the NOC (No Objection Certificate) has not been collected from the bank.

 What is NOC (No Objection Certificate)?

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 completely paid off and there is no outstanding to be paid by the customer as on a specific date. If the lender later claims that the borrower owes more to him, the borrower can produce the NOC at that time. It is thus, very important to collect NOC from the bank once the loan is completed.

NOC bank loan

How to get NOC For Paid Up Loan?

All you have to do is to write a letter to the bank asking for the NOC and all original documents that you submitted at the time of taking of the loan. Asking for NOC through post is not recommended because you may miss  the document in case you have changed your address which is not updated in bank system. If u have changed your address either get your address updated in bank data system or you can also collect it directly from the bank.

It must clearly state that the dues have been paid by the borrower and lender does not have any claim after that.

Once you have completely paid off against car, property or personal loan, always make sure to collect NOC from the bank failing to which you may get into trouble later in life.


You will not regret on later stages once you take your NOC from the bank when your dues are clear. The lender cannot claim that you owe him more. So always remember to collect NOC on loan closure, and don’t consider your job as done until you collect NOC.

Also Read- How To Get Your CIBIL Record Corrected Online In Case Of Some Error?



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