What is a Home Loan NOC and why should you get one

In general, a No Objection Certificate (NOC) is a formal document issued by an authority (Government and Private authority) , any builder, society or any organization, or individual showing that they have no objections to a particular action, request, or transaction. It is a written confirmation that the issuer has no objections or concerns about the matter.

In relation to home loan NOC means this is a document that the home loan lender issues to you by declaring there is no outstanding due with the lender. You can obtain this certificate once the loan has been paid. The NOC comes under home loan closure formalities and documents. Once you have paid all the home loan you should ask your lender to do all the closure formalities such as getting NOC from the lender and other important documents.

Why should you take an NOC?

NOC is the legal document that says your home loan is purely completed, no dues have been pending from the lender and since, home loan is secured by itself, getting an NOC means the lender has no rights to your property. It's really an important document. Even if you pay all the EMI and don't get any NOC, that means there are some pending dues that can be completed.

• To get a new loan: Many banks will ask for a NOC if you want to take another loan. It’s really important to take NOC when you apply for a new loan.

• To sell your property: If you want to sell or transfer your property, you need an NOC. Buyers or new lenders will need proof that there are no existing loans or issues with the property.

• CIBIL Score: The NOC information will be sent to credit bureaus to update your credit score. This means the home loan is officially cleared from the credit report.

• Insurance: If in case your property is damaged by fire, natural disasters, in this case you can only avail the claim from insurance company when you have the NOC.

• No legal disputes in future: In future if there will be a confusion of the real owner of the property and face any legal disputes here in this case the NOC will help a lot.

• Peace of Mind: Having an NOC gives you peace of mind, as it confirms that the property is fully yours and there are no outstanding liabilities from the home loan.

What is the process to get the NOC?

• After completing your last home loan EMI, ask your lender to give all the property related documents with No Objection Certificate. Most of the banks also have the flexibility to apply for NOC through their online portal as well.

• Bank will take a few weeks to check if you have genuinely completed the home all with no pending dues such as any outstanding balance, penalties or any charges pending. After reviewing the documents, the bank will issue the NOC.

• You will get the NOC via courier once the bank is satisfied with your dues.

What to do in case you lost the NOC?

• First, you need to file an FIR in the nearby police station.

• Second, go to your bank with the FIR acknowledgement and apply for the NOC again.

• Third, the bank will ask you to pay a nominal fee for generating a duplicate NOC and it may take a few days to complete.

Common Mistakes to Avoid

1. Ignoring Final Dues: Even small unpaid charges or penalties can lead to the lender refusing to give you the NOC. Before asking for the NOC, check the final statement from the lender, pay any outstanding amounts, and confirm with the lender that your account is fully settled.

2. Delaying NOC Request: Lenders often have a set time frame for issuing NOCs after a loan is closed. Waiting too long to request the NOC could lead to extra checks or problems. Asking for it right away helps keep the process smooth and quick.

3. Not Verifying the NOC: Check the NOC carefully for correct spelling of names, accurate loan account numbers, and correct property details. Mistakes can cause problems with property records or future transactions. If you find any errors, tell the lender and ask for a corrected NOC.

Summary