What is NOC in a Personal Loan

What Is NOC In A Personal Loan? – Loaney

If you have considered borrowing a loan any time in the recent past, you might have read through several bank brochures, considered all types of loan options, browsed through endless blogs and articles on the different types of loans, the different moneylenders, and whatnot might have already come across the question what is NOC. You might also have consulted friends and family about their opinions on the type of loan you would have finalized and even seek advice from them or your finance expert friend.

Generally, people are aware of the two phases of borrowing a loan, the loan application, and approval and the repayment of the loan amount with interest within the stipulated period of time. Not much is explained about the phase after the loan is paid- the loan closure formalities. This is the last and final phase and one of the most important and major formalities of this phase is the collection of the NOC from your moneylender. 

The question that now arises is, what is a NOC? How to apply for a NOC? What does NOC mean?

If you are also confused, then this article will help you out. In this article, we will be learning in-depth about a NOC certificate and how to complete the NOC application to obtain the certificate from your money lender. We will also be looking at the importance of getting this certificate at the time of loan repayment completion and the benefits of owning this document. We will also take a look at how to get this document online and how it can be transferred. 

Table Of Contents

We will be taking a look at the following subheadings related to a NOC document, in the upcoming sections of this article:

  • What is Loaney? How to apply for personal loans easily?
  • What is NOC in a personal loan?
  • Features of NOC document
  • Why is it important to collect the NOC from your lender?
  • How can you get the No Objection Certificate online?
  • How is the NOC transferred?

By the end of this article, you will have all the required details about the NOC document collection after the payment of a loan and you will have all the necessary information to apply for a loan. 

What Is Loaney? How to Apply for Personal Loans Easily?

The internet and the online space for all essential services have simplified our lives and made a lot of tasks easier. Loan borrowing too has become simpler than ever owing to digital platforms like Loaney. Although there are news and headlines of online scams and frauds every now and then, if you choose the right moneylender, you can experience a smooth and seamless money borrowing procedure. 

Loaney is a reliable and trustworthy portal for online loan borrowing which extends small loans to its clients. It offers personal loans which are unsecured debts and can be availed of without presenting a guarantor or submitting a lot of documents. The interest rates at which this type of loan is offered are low and the repayment tenure is short. Loaney has pre-generated repayment plans that make the experience hassle-free for the clients. The application and approval of the loan do not take long and you can immediately withdraw the amount as per your needs. 

What Is NOC In A Personal Loan? 

Before we take a look at what a NOC is in a personal loan, let us understand what NOC means. Then we will be taking a look at what a NOC certificate is.

NOC means No Objection Certificate. This is a document that mentions that the loan amount has been repaid completely by the borrower and no more dues are payable by the borrower. This document is issued by the moneylender or bank after the loan amount is cleared along with the interest applicable to it. A NOC document marks the formal closure of the loan repayment cycle. 

The No Objection Certificate or NOC is issued at the end of the repayment cycle of your personal loan by the personal loan lender. The No Objection Certificate or NOC is also known as the No Dues Certificate and it implies that no more payments are due for the mentioned loan. This certificate is issued at the end of the loan cycle and has all the information like the loan details, the name of the borrower, the date when the loan has been closed, etc. This certificate is issued by the bank or moneylender only after the loan amount and all other charges related to it have been paid completely. The NOC confirms that there is no further liability of the borrower towards the lender. You must make sure to collect the No Objection Certificate from the moneylender after paying off your personal loan. 

Features Of A NOC Document

Now that we know what NOC means, let us take a look at the features of a NOC document:

  • The NOC document can only be issued by your moneylender, loan provider, or bank.
  • This document can be issued only after complete repayment of the loan amount along with the interest amount
  • The NOC document can be obtained by the borrower in the last phase of the loan and this document marks the official closure of the loan cycle.
  • This document contains the important details regarding the loan like the applicant’s information such as name, the date of closure of the loan, etc.
  • The No Objection Certificate prevents any legal repercussions on the borrower in the future. 
  • It also helps in clearing any discrepancies that might have occurred.
  • Submitting the NOC document to a credit rating agency like TransUnion CIBIL Limited also ensures that the borrower will have a good CIBIL score and a healthy credit report. 

All these factors make it important for the borrower to always get a NOC document from the lender or bank after completing all payments. In the upcoming sections of this article, we will be taking a look at how to apply for NOC and the benefits of owning this document. 

Why Is It Important To Collect The NOC From Your Lender?

When you collect the no-objection certificate from your moneylender or loan provider or bank at the end of a loan cycle, you are ensuring yourself of no future repercussions. There are cases of borrowers being harassed despite clearing all their debts because they did not get a NOC document issued. To avoid such a situation and other consequences to fill up a NOC application and get this document issued from the loan provider at the earliest. 

The following are some of the reasons why the NOC document is important to be collected from your bank or moneylender:

  • No-Objection Certificate affects your credit report. The NOC document issued by your lender must be submitted to a credit rating agency like TransUnion CIBIL Limited. This helps you maintain a good CIBIL score and credit report which are important for you as a borrower. Submitting the NOC to a credit rating agency updates the information of your repayment and impacts your credit report positively. 
  • The No-Objection Certificate prevents the borrower from any legal repercussions. In case you do not get the No Objection Certificate issued from your loan provider or bank, you stand the risk of your lender asking you to pay the due amount. There is also a risk of the moneylender or bank initiating legal proceedings against you. In such a situation, it will be difficult for you to support your case without any legal documents or the no-objection certificate. 
  • The No-Objection Certificate is proof of you paying the full amount to the loan provider or bank within the stipulated time frame. There are several incidences of moneylenders or loan providers harassing the borrowers and hence as proof of your paying the loan, you must always get the no-objection certificate issues. If you do not have a no-objection certificate, you will have no legal proof of paying the loan amount and interest back to your loan provider. The No Objection Certificate documents that you have completely paid back the amount and there are no further dues that need to be paid.
  • Getting the No-Objection certificate issued can help you get a balance transfer. If you are applying for a balance transfer, the no-objection certificate from your current loan provider is an absolute necessity. Your new moneylender or loan provider will not be able to initiate the process, without receiving the no-objection certificate from the previous loan provider. 

How Can You Get The No-Objection Certificate Online? 

The only prerequisite of getting your NO Objection certificate from the moneylender or loan provider is that you must have paid all your dues and completed all the payments and charges related to the loan in question. After this, you can write an application for NOC to your loan provider. Using this NOC application, you must notify the money lender or bank of the fact that you have paid all your dues and have completed the repayment cycle. You must ask your loan provider or bank to provide you with a copy of all the invoices of the amount paid, the original documents, and the No Objection Certificate. You might need documents like your identity proof, address proof, cheque, and details of the installments paid to prove your identity and the fact that the loan has been repaid completely.

How Is The NOC Transferred? 

The No-Objection Certificate that is issued by your moneylender or loan provider is required for your new loan provider to initiate the loan process. The certificate must necessarily be collected to ensure a smooth balance transfer.


1. What is the difference between NDC and NOC?

NOC and NDC are two different names for the same document. The NOC means No Objection Certificate and NDC means No Dues Certificate. 

2. How do you write a bank NOC?

After completely paying all your dues, you must write to your moneylender informing them of the same and requesting the No Objection Certificate. 

3. How do you get NOC after loan closure?

You can get the NOC only after completing all your payments and then writing to your money provider requesting to issue the same.