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Why is the Collection of NOC Important After Repaying a Loan?

January 31, 2018

A lot of people know how to get a loan and the various things to keep in mind during its repayment. However, only few know about the closure formalities of the same, i.e., how to close a loan account in the right manner.


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Once you have repaid the entire loan amount, it’s important to proceed with the correct closing process, of which the collection of No Objection Certificate (NOC) is an integral part.

What is NOC in a loan?

An NOC is a legal document that proves that you have successfully paid all your dues to the lender and that they don’t have any problems (objections) whatsoever. It also serves as a legal proof that the lender doesn’t have any legal rights over your collateral (in case it was involved).
An NOC also contains various details including your name, address, account number, etc.

What’s the process for obtaining an NOC?

When it’s time to collect your NOC, be sure to keep these things in mind:

  • Once you have paid the final EMI of a loan, you can write an application to your bank asking them to return all the documents they have with them, such as your property papers, etc. along with an NOC.
  • You can also check if your bank allows its customers to download the NOC online. If it does, then you can log into your online banking account and download the certificate directly.
  • If you had obtained a car loan, then you are supposed to get not just an NOC, but an RTO form as well which is also called Form 35. This is because you have to submit this form to your local Regional Transport Office.

No matter what type of loan you had borrowed, it’s important to get an NOC from your bank. Otherwise, it could result in unnecessary complications later on.


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