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Full repayment of personal loan or any other form of loans is a relief that many simply cannot express in words, as it means that either the borrower has a smaller credit burden on themselves and/or they are practically debt free. However, in order to provide proof to the individuals representing the credit agencies that a loan and the interest amount it attracted has been paid in full, they will require a Personal Loan NOC Certificate. This article will essentially take you through what that means and why it is important for the borrower to have one. 

What is a Personal Loan NOC Certificate?

A Personal Loan NOC or a No Objection Certificate is essentially a legal document issued by the relevant individuals representing an organisation, agency or individuals. As the name suggests, an NOC is a document which states that the parties involved in a transaction have no qualms or objections over a party taking a specific form of action. In the case of personal loan closures, an NOC certificate can also be called a “No Dues Certificate”

Advantages of a Personal Loan NOC Letter

As mentioned before, it primarily takes away the rights given to the lender concerning the possession of any collateral. Additionally, amongst the other various advantages that an NOC letter for Personal Loan has, it also gives the borrower the much-needed peace of mind which they will need once the loan repayment process is over. Some of the other advantages of a Personal Loan NOC are as follows:

  • It is an authentic document which does not have any form of discrepancies regarding a Personal Loan closure whatsoever, should it arise in the future regarding loan repayment.

  • Submitting the Personal Loan NOC to CIBIL or other credit bureaus almost guarantees a healthy credit score.

  • It prevents you from the legal hassles that may arise in case there is any confusion regarding the settlement of a personal loan.

  • Lastly, it also acts as proof of the fact that the personal loan in question has now been closed and the borrower is no longer obligated to pay anything towards a particular form of credit taken by them.

What Does a Personal Loan NOC Certificate State

In the case of personal loans, it is a document which is issued by a lender stating that the borrower has cleared all the dues that they were supposed to honour while repaying the loan and have also paid the interest amount in its entirety. Once the loan has been paid off, it is vital to collect the NOC from the institution that lent the amount to them. Typically, there are some details that you will find on every Personal Loan NOC letter. You can find a list of the same below. Generally, a No Objection Certificate Includes the Following Details

  • Your name

  • Details pertaining to the loan

  • Property Address (In the case of a online home Loan)

  • Date of the closure of the loan

  • A statement explicitly stating that the loan amount, along with interest, has been paid in its entirety.


It must also be noted that a Personal Loan NOC letter acquits all of the lender’s rights to the possession over the collateral, if the documents concerning the same have been given to them. Typically, banks, NBFCs and other registered financial institutions tend to dispatch the Personal Loan NOC certificate to the address of the lender. However, If the lender has changed their address at any given point in time during the repayment tenure, they must make sure of the fact that the same has been communicated to the lender for the purpose of their records.

How to get Your Personal Loan NOC Letter?

In case the responsibility of obtaining a Personal Loan NOC letter falls upon the borrower, they must ensure that the same has been received from the lending institution on time. All a borrower will sometimes need to do is simply write a formally-drafted letter requesting for the NOC letter as well as the original copy of all of the documents submitted at the time of the Personal Loan application. The latter should be requested in case the borrower has provided any form of collateral.

What Should be Done if Your Personal Loan NOC Document has Been Misplaced

If your personal loan document gets misplaced, it is advisable for the borrower for them to file an FIR. Post the same, the borrower must approach the lender along with the copy of the FIR and the loan-related documents in order to get a duplicate copy for an NOC. This process, however, may be a time-consuming one. Once the Personal Loan NOC letter copy in question has been received, it is upon the former borrower to ensure that all the details printed on it that pertains to your identity and the loan are correct and the words “No Objection” are used in suitable places.

What Happens if you do not Have a Personal Loan NOC Letter?

Failure of collecting a Personal Loan NOC Certificate can have severe legal as well as financial implications. What you will find below is a list of possible repercussions of not being in possession of one. Read on to know more.

Repercussions of not Being in Possession of a Personal Loan NOC Letter

  • The credit score gets affected adversely: A Personal Loan NOC letter is as important for your credit score as is the act of paying off your dues on time. The lack of possession of an NOC for a previously-taken loan can negatively affect your credit score, which would consequently cause difficulties while taking a loan in the future. In some cases, it may just be impossible for a borrower to take any other such form of credit without a Personal Loan NOC letter.

  • You may be asked to pay more than what you have borrowed: Failure to collect a NOC letter from the lender can lead to them asking the borrower for the outstanding amount they may have already paid off in the first place. In the best-case scenario, the same can cause a lot of confusion and may require the borrower to prove that the personal loan in question has been repaid multiple times over.

  • You Could Even be Implicated Legally: If the borrower is unable to prove that they have paid off their dues, the lender may ask them for the outstanding amount constantly. They may even press charges on the borrower on the grounds of them being unable to make timely payments towards their credit obligations.


If you would like to learn more about the documentation and other kinds of procedures one must undertake in connection to personal loans, or, if you wish to apply for one yourself, you do the same through Bajaj Markets. Apart from this, IF you are looking for the lowest personal loan EMI, Bajaj Finserv personal loan is the option for you!

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