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Tata Capital > Blog > Personal Use Loan > What is a Personal Loan NOC and Why is it Important to Know About It?

Personal Use Loan

What is a Personal Loan NOC and Why is it Important to Know About It?

What is a Personal Loan NOC and Why is it Important to Know About It?

Thanks to the internet, personal loans are a lot easier to avail. You can apply online, quickly get your loan approved, receive the funds and repay the amount in timely instalments. Simple, isn’t it?

However, your journey doesn’t end here. There is a critical step that many borrowers are guilty of overlooking. This involves taking care of the loan closure formalities. For this, you must collect a loan NOC letter from the lender.

So, what is a personal loan NOC and why you should know about it? Let’s find out.

What is NOC for personal finance?

A No Objection Certificate or NOC is a legal document denoting complete repayment of your loan amount. Also known as a ‘No Dues Certificate’, the NOC explicitly states that you have cleared all outstanding loan dues.

Your lender issues the personal loan NOC letter at the end of your loan cycle and sends it to your designated address. It consists of important information, including loan details, your name, date of loan closure, property address, etc.

Once you pay off your EMIs and all loan-related charges, a NOC confirms that you have no further liability towards the lender. This signifies the formal closure of your loan.

Why is it important to get your NOC for loan?

Safeguards your credit score

In case your repayment information isn’t updated, it can severely harm your creditworthiness. This makes it difficult for you to get any loan in future. On the flip side, a NOC reflects positively on your credit report. You can submit your loan NOC to credit bureaus like CIBIL or CRISIL, get your credit history updated, and ensure a good credit score.

Prevents legal repercussions

Without the NOC, you run the risk of facing legal complications. In case of discrepancies, a lender might sue you for not repaying on time. And if you don’t have any proof, the legal battle is unlikely to be in your favour. Even worse, you might have to pay an already paid amount.

Documents the paid amount

Without the NOC, you don’t have any record of your payments. It acts as legal proof that all outstanding dues are paid in full, and the borrower has no more repayment obligations.

Also, read – Low Salary Personal Loan

Key Details Included in a Personal Loan NOC Letter

When reviewing a personal loan NOC format, it’s crucial for one to know what to check in NOC letter. These points will help you verify the personal loan NOC letter and avoid future discrepancies: 

  • Borrower’s full name and correct personal details
  • Loan account number and type of loan
  • Date of loan closure and confirmation that the loan is fully repaid
  • Statement confirming zero outstanding dues, penalties, or interest
  • Release of any security or collateral associated with the loan
  • Lender’s official letterhead, stamp, and authorised signature
  • Reference to the lender having no further claim on the borrower

Lastly, it’s important that you keep both physical and digital copies securely, as they may be required for future loans, property transactions, or credit score correction.

Also, read – How much CIBIL Score Required for Personal Loan

How to Obtain Your Personal Loan NOC from Tata Capital

If you’re wondering how to get personal loan NOC from Tata Capital, here’s the step-by-step guide to help you: 

Step 1: Clear all dues

Ensure the personal loan for which you want to get Tata Capital NOC is fully repaid, including any pending interest, penalties, or foreclosure charges. Confirm your outstanding balance through the Tata Capital customer portal or helpline.

Step 2: Submit a request

Once your account shows zero balance, apply for NOC loan by raising a request via the Tata Capital website, email support, or by visiting the nearest branch. Keep your loan account number (LAN) handy.

Step 3: Verification and issuance

Tata Capital validates your closure details and then issues the Tata Capital NOC either digitally or as a hard copy. This may take a few working days.

Step 4: Store safely

Check all information for accuracy and keep the document securely for future reference.

Also, read – What is a Personal Loan?

What to Do If You Lose Your Personal Loan NOC?

If you have lost personal loan NOC, do not panic, as lenders can provide a duplicate copy after verification. Start by contacting customer support and explaining the situation. Most lenders require a written application stating the reason for requesting a duplicate loan NOC, along with identity proof and loan account details. 

Some lenders may ask for an indemnity bond on stamp paper to safeguard themselves from misuse, and a small processing fee might apply. Once verified, the lender will reissue a new NOC, usually within a few working days. 

It is wise to request a digital version as well, and to store multiple copies securely. Keeping organised records ensures you avoid future complications related to credit score updates or legal processes.

Also, read – What is the moratorium period?

Consequences of Not Obtaining a Personal Loan NOC

Failing to secure a No Objection Certificate after completing loan repayment can create several challenges. Among the key no NOC consequences is the risk of your loan still appearing as active or overdue on your credit report. This can significantly lower your credit score. Your future loan applications may even get rejected or have higher interest rates. 

There can be operational issues without loan NOC as well, for example when selling property linked to a secured loan or verifying financial history for employment or visa applications. Therefore, promptly obtaining and safely storing your NOC is an essential step after completing repayment.

Over to you

So, to avoid the troubles mentioned above, get your NOC today. After paying off your loan EMIs, write to your lender and request back all your invoice copies, original paperwork, and the NOC.

Are you looking for hassle-free processing and repayment while getting personal finance? Turn to Tata Capital and enjoy a comfortable borrowing experience. Access attractive personal loan interest rates starting at 10.99% and loan amounts as high as Rs. 25 lakhs.

You can even choose a flexible repayment tenure of up to six years without pledging any security. Check out our easy personal loan eligibility criteria and simple documentation requirements.

Get in touch with us today by visiting our website.

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FAQs

Why is receiving a Personal Loan NOC so important?

Receiving a Personal Loan NOC is essential because it officially confirms that your loan has been fully repaid and that no outstanding dues remain. It helps ensure your credit report is updated correctly, preventing future issues while applying for new loans. Additionally, it protects you from unexpected claims or disputes from the lender and serves as legal proof of loan closure.

How long does it take to get the NOC after closing a personal loan?

 

Once the final payment is processed and all dues are cleared, most lenders issue the NOC within 7–15 working days. Timeframes may vary depending on internal verification and documentation. If the certificate is delayed, it is advisable to contact customer care or visit the branch with your loan account details for follow-up.

What details should I check in my Personal Loan NOC letter?

 

Verify that the NOC includes your full name, loan account number, closure date, confirmation of zero outstanding balance, and the lender’s official stamp and signature. Ensure it clearly states that the lender has no further claim against you. Mistakes in these details could affect your credit record, so reviewing them carefully is important.

What should I do if I don't receive my Personal Loan NOC or if I lose it?

 

If you do not receive the NOC within the expected timeline, politely follow up with the lender through customer service or by visiting a branch. If the document is misplaced, request a duplicate copy by submitting a written application and identity proof. Some lenders may require an indemnity bond for security purposes.

Can I face legal issues if I don't obtain a NOC after personal loan closure?

 

Yes, not obtaining a NOC may lead to complications. The loan could continue appearing as active on your credit report, affecting your eligibility for future borrowing. In some cases, lenders could raise disputes regarding unpaid dues, potentially resulting in legal notices or financial stress. Therefore, securing a NOC as soon as you’ve paid your dues, is highly advisable.

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