It is true that a personal loan is easy to avail and can be repaid in fixed monthly instalments as per your tenure. However, though it helps you arrange funds for your varied needs, it’s after all a debt. You might agree that debt can add to your stress and affect your monthly budget. Therefore, it could be a huge relief to finally repay your loan. Once you repay the entire loan amount, you can attribute your earnings to other goals. However, your responsibility does not end at repaying the loan. There are certain other steps that you must follow to complete the loan process. Getting your personal loan NOC is one of them. Obtaining your personal loan NOC is a crucial step in the loan closure process. Here is a brief guide on personal loan NOC and its importance.
What is a personal loan NOC?
A personal loan NOC or No Objection Certificate is a legal document that states that none of your dues are left to be paid for a personal loan. It is proof that you have repaid all the EMIs and you owe nothing to the lender. The lender provides you with the NOC letter after you have repaid the entire loan amount in full. It is also called a no dues certificate as it certifies that you have no dues pending.
What does a personal loan NOC contain?
It is crucial to obtain the NOC from the lender. It contains the declaration that you have repaid the entire loan amount with its interest in full. A personal loan NOC contains the following information –
- Your name
- Loan details
- Date of the loan closure
- A statement explicitly stating that the loan amount and its interest have been paid in full
How to get a personal loan NOC?
Typically, it is the responsibility of the lender to send the loan NOC to the borrower’s registered address once they are assured of the full repayment. However, if you have changed the registered address during the tenure, you might not receive the letter. You would then need to write a letter to the lender requesting a NOC. You must also request the original copies of all documents required for personal loan that you submitted to the lender for the application.
Why should you have a personal loan NOC?
- It is an authentic document that proves that the loan is closed and you have no obligation towards the lender
- It ensures a healthy CIBIL score
- You are saved from any legal hassle that may arise in the future due to confusion regarding loan repayment
You could face adverse and unpleasant repercussions if you do not get a NOC from the lender. You could be asked to pay more than you owe and could also be legally implicated. Moreover, not obtaining a NOC can cause a dip in your credit score. Therefore, ensure that you obtain a NOC as soon as you repay the loan.
