Loan NOC Letter: Why NOC Is Required, And How to Get It?


You’ll need a bank NOC letter if you’re applying for a home loan or ending your loan account. A no-objection certificate is a legally binding document provided by the appropriate authority. If you need a NOC from the financial institution to close your loan paperwork, you must submit a request for a NOC from the bank, stating the basis for your demand.

applying for a home loan

But ordinary citizens still struggle to understand why a NOC letter for a loan is required and the procedure to get it. That’s why we have created this article to help you to understand why NOC is required and how to get it. So without any further delay, scroll down to know the requirements and procedure.

  • Assists you with paperwork

A loan NOC is a legally binding document that verifies that you have repaid all of your debts in total. If you do not receive your loan NOC, you may find yourself in a problematic scenario. Your lending institution, for instance, may request you to return debts that you have actually paid.

It’s tough to establish that you’ve paid all of your obligations without any proof. As a result, it’s a good idea to get all required papers from your lending institution, such as the loan NOC.

  • Affect your credit score

Few people understand that now that CIBIL is in effect, their credit rating will almost always be used when they apply for a new loan. A NOC letter for a bank loan is absolutely necessary for the future. And if the conclusion of a previous loan has still not been reported on CIBIL owing to your previous creditor’s inability to send the notification to CIBIL, your credit rating will suffer. Then, and only then, does a NOC spring to one’s assistance since it is the only documentation that can prove that a previous loan has been completed.

  • Mental weariness

The lending institution might also consider suing you for not making the payments because you have no evidence of repayment. When you get inquiries from recovery agencies, you can feel extremely tired and stressed out once you’re in legal trouble and don’t have a NOC to show your loan payments.

How to obtain a NOC?

After your credit account is complete, an E-NOC is provided and mailed to your registered email id as per the bank’s files within seven working days, provided to no further obligation with the institution.

When you pay off your loan and conclude it, the lending business provides you with your NOC through registered mail when all documentation has been completed.

You don’t always get your NOC for a number of different reasons, including a change of address or courier difficulties. It is preferable to approach your financial institution and get a NOC on the required address in this scenario.


We hope this article helps you to understand why a NOC letter for a loan is required and how to get it. You must be aware of the importance of a NOC and whether you should not postpone the loan closing procedure after the last EMI is paid since a postponement can generate a slew of problems.

Also, check that the NOC has all important information about your primary residence address and loan settlement information, and if it is corrected and entered in the CIBIL system when you obtain it.


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