NOC letter is a document issued by the lending institution as a proof that a borrower has closed his/her loan account and there are no outstanding dues against his/her name. No Objection Certificate (NOC full form) is crucial since it states that the property which was kept as collateral belongs to the borrower and the lending institution carries no ownership rights over it.
Apart from that, there are also other reasons why you should ask your lending institution to issue a NOC letter. It includes –
You can only claim your original documents after you have closed your loan account in full and been issued the certificate by the lending institution.
The No Objection Certificate is essential for updating your credit history. Since it acts as proof that you have closed a home loan successfully, it will aid in enhancing your credit score.
Now that you know what is NOC and what are its benefits, you can follow the steps below to collect your NOC letter from the lending institution –
Communicate to the lender that you have closed your loan account and request them to provide you with a NOC.
The lending institution will verify your loan repayment status.
If everything is in order, then the financial institution will issue a NOC, which will be mailed to your residential address along with the original property documents.
In case you have misplaced your No Objection Certificate, you can apply to the respective lending institution for a duplicate certificate. However, before application, you need to lodge an FIR and submit it along with other essential documents for re-issuing of the certificate.
