Last Updated on March 8, 2024 by admin

The system needs documentation for every event like birth, school graduation, death, and repayment in totality. Even if you have paid all your outstanding dues, you do not have a NOC (no objection certificate). This leaves you open to pursuit by the recovery agents and potential legal conflicts. Thus, you must ensure that all the loan cycle phases are supported by relevant paperwork. If you have never ever availed of a personal loan, you must be aware that the procedure usually entails 4 steps – loan application, loan approval, getting the instant personal loan and loan repayment on a timely basis.

You might apply for a personal loan thoroughly online with a few of the best online financial institutions like Dhani personal loan, Axis bank, ICICI bank, HDFC bank, etc. In case you have any doubt about your personal loan, then you can approach Indiabulls Dhani personal loan customer care or other lender’s customer care support from whom you have availed the loan to clear all your queries. You are almost done with the application process for a personal loan as you repay all your loan EMIs. Keep in mind that there’s just one action left for you that you must take. Collect your loan’s NOC. This is one of the crucial loan closure formalities. Ensure to learn all you need to be aware of the loan NOC or the loan clearance certificates here. 

What’s a loan NOC?

NOC is the full form for the no objection certificate. Here, in the case of a personal loan, it means a loan clearance certificate. This is a legal document that the lender issues to confirm all your unpaid debts that have been cleared and that no more debts are outstanding to be paid on a particular date. When a lender issues you a loan NOC, your cycle of repayment is officially over. As an outcome, it shields you from potential legal ramifications linked to your debt. 

What does personal loan NOC mention?

In the case of personal loans, it is nothing but a document issued by the lender certifying that you have paid the complete amount of interest due and all other obligations you are met. It is important to obtain a loan NOC from top lending financial institutions. Note that every personal loan NOC will contain crucial details like – 

∙       Your name

∙       Loan details

∙       Loan closure date

∙       Declaration explicitly mentioning the complete loan amount involving interest constituent that has been paid. 

It must be noted that if the lender has received the required documentation, a personal loan NOC waives off all their claims in relation to the possession of security or collateral. Typically, a personal loan NOC certificate is forwarded to your address by the financial institutions. However, if you change your address at any point during the repayment period, you must ensure that the lender is informed so that the change is recorded. 

Also Check: Indiabulls Dhani personal loan customer care

Why must you collect the personal loan NOC from your bank?

Assists with documentation

A personal loan NOC is a document that attests to full payment for your dues. Failure to collect loan NOC can lead to a problematic situation. For example, your lender can inadvertently request you to pay the past dues. It can be extremely challenging to prove that you have paid all dues in the absence of any form of documentation. Thus, it is recommended to obtain all required documents like loan NOC from your bank lender.

Assists manage future loans if notified to the CIBIL.

If a lending company is unable to collect your personal loan NOC and informs CIBIL of this, it is your responsibility to alert CIBIL. It is thoroughly your responsibility to do so. If you do not tell the credit bureau, it will be assumed you have not repaid the loan. This can massively impact your credit score and prevent you from obtaining a loan in the future at a suitable rate of interest. 

Be away from the legal issues.

In the worst-case scenario, your lender may file a lawsuit against you. In such a case, it may be tough to prove your case in the absence of loan NOC. You must even take your time and then follow up with your bank lender on NOC. You will feel more at ease and completely be able to avoid future legal problems if you get the loan NOC document. 

Helps with a balance transfer

You completely must obtain NOC from your present lender if you want to apply for the balance transfer. Your new lender will not be able to initiate the balance transfer process without loan NOC. 

How to apply for a personal loan NOC?

Applying for as well as receiving the loan clearance certificate is easy. Ensure to keep in mind that you can just apply for the personal loan NOC once your loan is completely repaid. 

Listed are the important steps you must take to get a loan NOC – 

∙       Initially, you must inform your lender about all the instalments that you have paid. 

∙       You will require providing documentation that proves your residence, identification, and loan linked info and loan statements that involve info on your loan EMIs. 

∙       You will require submitting an identity proof and cheque for the lender to authenticate info like your identity and account number. 

∙       Your loan account is closed after the required documentation and formalities are done and your lender issues a loan NOC. 


Finishing all your personal loan repayments and having nothing much to pay to the financial institutions is an achievement that brings you a lot of relief. Now you can simply sit back and relish your home with zero stress on EMI repayments. However, do you know how necessary it is to get your NOC (no objection certificate) from your bank lender after your personal loan is done? Even if you have repaid your last EMI, it is just when you receive the loan NOC from the bank saying your personal loan repayments are made the process is complete. Like you put in a lot of hard work and cut down on a lot to make on-time credit repayments to obtain a NOC on a personal loanTips To Enhance Personal Loan Eligibility; too, you must put in a lot of your hard work.