Posted On: 19-May-2022
It is due to the internet that loans are now an easy option to avail. You can apply for personal loans now at an ease from your sitting couch through the online mode. You now receive the loans online and then repay it in timely instalments. But it isn’t as simple as it looks. Your journey doesn’t end right here. There is one major step that borrowers miss on but is highly important. You must take care of the loan closure formalities. For this what you must not forget collecting from your lender is the NOC letter.
Let us now find out what is personal NOC and also the importance of personal loan NOC.
A NOC is a No Objection Certificate. It is a legal document which denotes the complete repayment of your entire loan amount. The other name for it is No Dues Certificate. It is a legal document that states that you have cleared all your EMI dues or outstanding.
If you’re thinking where to get that, let me tell you that it is your lender who will issue the NOC letter at the end of your cycle of personal loan and send it to you in your address which you had given when you went to apply for personal loan. It will bear important information such as your name, loan details including your loan closure date, property address etc. It is the NOC that gives you a formal closure of loan, it states that you have no more liability towards your lender and that it is formally cleared.
Let us quickly and briefly go through the importance of NOC. NOC is a mandate because not having it may affect your creditworthiness. Without the NOC and loan closure information may not be updated which might lead to your CIBIL score being affected. If your CIBIL score is affected it will become difficult and at times impossible for you to avail loan options in future. Having a NOC reflects positively on your CIBIL score. You might face legal complications without a NOC letter. In case of discrepancies you wouldn’t even be able to prove your innocence since you do not have any proof of payment. In case of all this you might have to pay the already paid amount which is even worse. Without the NOC you do not really have any documents to prove that you’ve paid the amount. It acts as a legal proof, which officially makes sure that the borrower has no legal liabilities towards the lender.
Conclusion
So if you do not want to face any such troubles in your lifetime get your NOC right today. After you have repaid the loan amount ask your lender to provide you all the invoices of your loan repayment and at the end ask for the NOC letter. This will save you from a great deal of future problems.