Completing all your home loan repayments, and having nothing more to pay back to the bank or NBFC, is an achievement that brings a lot of relief. Now you can sit back and enjoy your home without the stress of your EMIs playing on your mind. However, did you know how important it is to get your No Objection Certificate (NOC) from your lender after your loan is completed? Even if you have paid off the last EMI, it is only when you get the NOC from the bank that you can say that your home loan repayment is truly complete.
What is home loan NOC?
A NOC is the legal document issued by your lender, whether it is a bank or an NBFC, that you have no more dues to be paid. It is a document that clears you from any further obligation to the lender. This document will have all the information that pertains to you such as address of the property, date of loan closure, your loan account number, your own name and other details.
Importance of the NOC for your home loan
The NOC is an important document in the ownership of your property because it states that the bank has no right to the collateral (which was your property for which the home loan was availed) any more. It states that the property is now solely in your name and has been transferred back to you from being the collateral of the bank.
Why you need your home loan NOC
Apart from the reasons stated above, there are many other reasons the NOC is absolutely important to have. These reasons are as given below:
- It will update your credit record and CIBIL score.
- It will make it easier for you to apply for any new loans and be approved for them without any delay or problems
- It is legal record of your dues being paid to the lender so that there are no legal entanglements in future
- It is proof that your property is now in your own name and is no longer a collateral with the bank
Process of NOC
The NOC will be sent to your registered address by the bank. However, if your address has changed, you would need to either update the address or request to receive the NOC in person from the bank. The process for receiving the NOC is as given below:
- After paying your last EMI, write a letter to the lender requesting that all original documents be returned to you along with any invoices and the NOC
- Some banks and NBFCs have the option of downloading the NOC directly and quickly from the website when your last EMI has been paid. To do this, log into your customer portal with the required details and download the document. You can also have it forwarded to your registered email address
- For registered properties, you may have to visit the office of the Registrar of Properties along with a representative of the bank in order to get the NOC.
Once you have received your NOC, your home is truly yours.