Repaid Your Home Loan? Now, Here’s Why You Should Get The NOC From Your Lender

Paying off a debt is a big financial achievement, and when that obligation is something as big as a home loan, the borrower can certainly breathe a sigh of relief and get a sense of satisfaction.

However, the borrower’s responsibility doesn’t end here with just repaying the loan. Unless the borrower has received a No Objection Certificate from the lender, he is still not in the safe zone. The bank typically sends monthly statements, but only after they formally declare in writing that they have no claim on the borrower’s property, can the borrower actually be claim to be the owner of the property.

What is a No Objection Certificate

A No Objection Certificate (NOC), sometimes referred to as a “no dues” certificate, is the formal, written confirmation from the lending institution to the borrower that the loan has been fully cleared of equated monthly instalments (EMIs), interest, penalties, and everything else. Without the NOC, the property technically still carries the shadow of a financial claim, even if the borrower has paid every rupee owed to the lending institution.

What the NOC Includes

The NOC includes the borrower's name, loan account number, property details, date of loan closure, and a clear statement that the loan has been repaid in full and the lender has no further claim on the asset.

How to Get the NOC

Here are the steps to get the NOC from the lender.

Step 1: Clear All Dues

Make sure every EMI, interest payment, and charge is cleared. Don’t leave out any late penalties or minor fees.

Step 2: Request the NOC

Contact the lender. This can usually be done online, through the bank’s app, or in person at the branch. Some lenders issue NOCs automatically; many do not.

Step 3: Submit Any Required Documents

The borrower may need to submit their identity proof, a formal loan closure letter (if available), and property details.

Step 4: Wait for Verification

The lender will verify the repayment status. This may take a few days.

Step 5: Receive the NOC

Once verified, the NOC will be issued. Some banks send it digitally; others post it on the borrower’s registered address. In either case, save a digital and a physical copy.

Remember that without the NOC, selling your property later can become a hurdle. New buyers, banks, and even the land records department often require it before moving forward.

Even if the borrower doesn't plan to sell, holding a property that still carries an old lender’s claim is a legal risk that should be avoided.

FAQs

Q: Can you sell a property without an NOC?

Technically, the borrower can initiate the process, but no buyer or bank will move forward without that certificate. It's a key part of the due diligence.

Q: How long does it take to receive an NOC after loan closure?

Usually 7-15 working days. It depends on the lender’s internal process.

Q: What if there's an error in the NOC?

Get it corrected immediately. Even minor errors in name or account numbers can cause legal issues later, especially during resale or property transfer.