What is personal loan No Objection/ No Dues Certificate?

Last Updated: 14 Oct 2024

A personal loan No Objection/ No Dues Certificate (NOC) is issued by the lender when you have fully paid back the personal loan that you took from it. After the full repayment of the loan and the interest on it, you should approach the lender for issuance of the NOC. The lender will issue it in hard copy or soft copy form, depending on your preference.

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Ensure that you get this NOC from the lender

It is important to get this NOC from the lender. Keep this NOC in your records. In case of any future legal conflicts with the lender, you will have a ready document to prove that you paid back fully the interest and principal on the loan that you took. While applying for a loan in future with the same lender or another lender, you can attach this NOC with your loan application form. It will show your creditworthiness to the prospective lender. Even in this age of IT technology, when there are databases having your credit score, such as CIBIL, it is better to keep your own record too, showing your creditworthiness. It can accelerate the approval process for the future loans that you take.

Usually, it is the responsibility of the lender to send the NOC to your registered email id or address, once you have fully paid back the loan. But many times, lenders may forget to send this NOC. You should immediately ask the lender to issue the NOC, if such a case arises.

This NOC on fully paying back the loan and the interest on it is not just issued in the case of personal loans. It is issued in the case of every type of loan, when you repay the loan. So if you have taken gold loan from a lender like IIFL Finance, you will be issued an NOC when you repay the loan fully along with the interest on it. In the case of secured loans, such as gold loans, the lender automatically issues the NOC when it releases to you the security on the repayment of loan. In the case of gold loans, this security is the gold or gold jewelry that you pledged at the time of taking the loan.