The system needs documentation for every event, including birth, school graduation, death, and your loan repayment in totality too. Even if you have paid all your outstanding dues, if you do not hold any NOC (no objection certificate), it is not on the record. It may even make you approach a recovery agent and potential legal conflict officer. Thus, may it be a personal loan from PSUs like BOB Digital personal loan or SBI or by private sector banks like Axis Bank or HDFC Bank, you must ensure to collect the NOC from them.
You must ensure that all the loan cycle phases are properly supported by substantial documentation get from London Apostille Services Ltd. If you have ever availed a personal loan, you must be aware that the procedure usually entails 4 steps – loan application, loan approval, getting a personal loan at an offered Bank of Baroda personal loan interest rates or appropriate interest rate from any other lender based on your credit profile and timely repayment of the loan. You might place an application for a personal loan thoroughly online with a few of the best online bank lenders. Once you repay your final loan EMI, you are almost done with your personal loan application procedure. However, you note that there’s just one important action left from your end. The settlement of the closing formalities is the ultimate step in your repayment procedure. Collecting your personal loan NOC is one of the necessary loan closure formalities. Read on to know all you must be aware of loan NOC or the loan clearance certificate here.
What’s loan NOC?
NOC stands for ‘No Objection Certificate. In the scenario of a personal loan, it can even mean a personal loan clearance certificate. This is a legal document that the lender issues to confirm all your unpaid debts are fully cleared and that no more debts are outstanding to be paid on a particular date. When your lender issues the personal loan NOC, your loan repayment cycle is officially done. As an outcome, it protects you from potential legal ramifications linked with your debt.
Also Check: Bank of Baroda personal loan interest rates
What does personal loan NOC mention?
In the case of personal loans, it is an important document that the lender issues for certifying that you have paid the entire amount of interest and all other obligations you are required to meet while repaying the personal loan. It is important to take up NOC from a financial institution. Every NOC for a personal loan will involve a few crucial statements. To get the NOC, you must provide the following details –
∙ Your name
∙ Loan details
∙ Loan closure date
∙ Declaration explicitly states that the complete loan amount involving the interest constituent has been paid
It must be noted that if the bank lender has received the important documentation, personal loan NOC waives all the lender’s claim to possession of security or collateral. Personal loan NOC is sent to the borrower’s address by the NBFCs, banks and other financial institutions. However, if you change your address at any point in the course of the repayment period, you must ensure that the lender is well informed so that this change can be effectively recorded.
Why must you collect NOC from the lender?
Assists with documentation
A personal loan NOC is a legal document that is attested to the complete payment of all your loan dues. The inability to collect your personal loan NOC can lead to problematic scenarios. For example, your lender may inadvertently request that you easily repay your previous dues. It may be challenging to prove you have paid all your loan dues in the non-presence of paperwork. Thus, it is recommended to obtain all the essential documents like loan NOC from the lender.
Assists with future loans only if notified to the credit bureau.
In case the lending company is not able to collect your NOC and inform the credit bureau about it, it is your responsibility that you do it on your own. It is not the lender’s responsibility. If you do not reveal the credit bureau, it may be assumed that you have not repaid the loan. It can impact your credit profile and prevent you from attaining credits in the future at a lower rate of interest.
Keep you away from legal issues.
The worst scenario is that your lender may file a lawsuit against you. It may be tough to prove yourself not guilty in the absence of the loan NOC. Here, you can take your complete time and follow up effectively with the lender on NOC. By doing so, you will feel at ease and will be able to easily avoid any future legal problems in case you receive your NOC document.
Assists with a balance transfer
You must obtain the NOC from your present lender if you want to place an application for a balance transfer. Your new bank lender will not be able to start the transfer procedure without the personal loan NOC.
How can you place an application for your personal loan NOC?
Applying for and then receiving a personal loan clearance certificate is very simple. Note that you can just apply for the NOC once your personal loan has been repaid completely.
Listed are the steps you must take to get a personal loan NOC –
∙ Inform your personal loan lender that all your monthly instalments are paid.
∙ You must provide documentation that proves your residence, identification and loan linked details and loan statements that involve info on your loan EMIs.
∙ You must submit the cheque and identity proof for the lender to authenticate the info like your identity and account details.
∙ Your loan account may be closed once your required documents and formalities are done and your bank lender issues you a personal loan NOC.
You put a great lot of work into making your personal loan repayments on time. And thus, you must also ensure to do the working end to end by obtaining a NOC from the lender once all your personal loan dues are repaid. Doing so helps to keep your credit profile positive, and this also allows you to enhance your eligibility for future loans at a lower interest rate.