The life cycle of a loan broadly consists of two major parts: getting the loan approved and paying back the loan in timely instalments. A third equally important part, usually not highlighted enough, is ensuring that your loan closure formalities are complete.
Bajaj Finserv eliminates the hassles of lengthy processes, forms, and the time involved in getting finance by allowing you to track your loan status and get an NOC letter online. You also get to avail of pre-approved offers on a suite of offerings like personal loan, home loan, business loan, EMI finance on different products and other financial services. Provide some basic information and get your pre-approved offer.
What is an NOC document?
No Objection Certificate (NOC) is a legal document that explicitly mentions that the borrower has paid all outstanding dues to the lender. Only after you collect the NOC letter, your loan cycle is truly over.
What happens when you don’t have an NOC?
Not collecting a No Objection Certificate for a loan closure can have both legal and financial implications. Here’s how:
1. Your credit score gets affected
An NOC letter is as important for your credit score as the timely payment of EMIs. Not having an NOC for a previously taken loan can adversely affect your credit score to the extent that getting a loan approved can become very difficult, and in some cases, impossible.
2. You could incur a financial loss
If you fail to collect your NOC letter from the lender, the person might ask you for the outstanding amount you may have already paid. This can result in a lot of confusion and effort to prove that you have paid the amount.
3. You could face a legal difficulty
Without an NOC, you do not have legal proof that you’ve paid your dues, and the financial firm that lent you the money can sue you for not paying on time.
How to get an NOC?
The only major prerequisite for getting an NOC letter is paying all the loan EMIs. Once that is done, the following steps can be followed:
- Write a letter to the lender asking for all the original documents, copies of invoices and an NOC. Usually, this process takes a few working days.
Pro tip: The process of getting Bajaj Finserv loan NOC online is straightforward. All you need to do is visit the Bajaj customer portal, view your loan details, select Bajaj Finserv loan NOC and download the document. You can also forward the document to your email ID.
- In case of a home loan on an unregistered property, the procedure remains the same as above
- If the home loan is on a registered property, then you must accompany a representative of the financial institution to the Registrar of Properties’ office and get the lien removed before collecting the NOC
- In case of a car loan, the financial firm issues an RTO form (Form 35) along with an NOC. Both the documents need to be submitted to the Regional Transport Office and your car insurance company
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