NOC : Why do you need no objection certificate, and how to get it

The life cycle of a loan broadly consists of two major parts - getting the loan approved and repaying your loan timely. However, one of the important parts of the loan cycle that isn’t usually highlighted is your formalities related to loan closure.

What is an NOC document?

Once you repay your loan completely and your loan is closed, a loan closure certificate is generated, which is NOC (no objection certificate). It is an important legal document issued by the financial institution in which they declare that you have no outstanding dues towards the lender. Only after you collect the NOC letter, your loan cycle is truly over.

Bajaj Finance eliminates the hassles of lengthy processes of managing your loan with the digital customer portal – customer portal. Our customer portal makes it easier to track your Bajaj Finance loan details and download your NOC once your loan is closed.

When is a NOC issued?

A No Objection Certificate (NOC) is issued by a lender, such as a bank or financial institution, once a borrower has fully repaid a loan. This document serves as proof that the borrower has cleared all dues, including the principal amount and any applicable interest, and that the lender has no claim over the asset used as collateral. A NOC is essential for removing any liens on the property, such as a vehicle or real estate, and helps in updating credit records to reflect the successful closure of the loan account. It's a crucial document for ensuring legal clearance.

What happens when you don’t have a loan NOC certificate?

If you forget to collect your loan NOC letter after the loan closure, this might impact you both legally and financially. Here’s how:

1. Your credit score gets affected

Not having the NOC letter after closing your loan can adversely affect your CIBIL Score. This means if you want a loan in future, it may become very difficult to get one. In fact, some lenders may not offer a loan unless you’ve submitted the NOC of your previous loan.

2. You might suffer a financial loss

If you don’t receive your NOC letter from the lender, you might be asked to pay the amount, which you have already paid. It is because your loan isn’t considered as closed. This will eventually result in confusion and might cause you financial loss.

3. You might face a legal difficulty

Without the NOC, you don’t have legal proof that you’ve paid your dues. The financial firm that lent you the money can sue you for not paying on time.

Additional read: What is a loan NOC and its benefits

How to get your NOC letter from Bajaj Finance Limited?

You can download your no objection certificate only after your loan is closed. If you’ve taken any loan from Bajaj Finance, you can download your NOC in a few simple steps by visiting your account with Bajaj Finserv.

• Click on the ‘Sign-in’ button on this page to go to our customer portal.
• Enter your mobile number, and date of birth and submit the OTP to sign-in.
• Select the loan account for which you want to download NOC from the ‘Your relations’ section.
• Click on the ‘View Statement’ option from the ‘Quick Actions’ section.
• Find all your documents and click on ‘No Objection Certificate’ to download it.

Important things to remember

• In the case of a home loan on an unregistered property, the procedure remains the same as above.
  
• If you’ve taken a home loan for a registered property, then you must accompany a representative of the financial institution to the Registrar of Properties’ office and get the lien removed before collecting the NOC.
  
• In the case of a car loan, the financial firm issues an RTO form (Form 35) along with an NOC. Both these documents need to be submitted to the Regional Transport Office and your car insurance company.