If you have availed of a loan and have paid all the EMIs and the dues, the loan will be closed on the maturity date. You should be aware that the obtention of NOC is essential to avoid complications in the future. This article is all about NOC full form and its advantages.
You would have come across the word NOC in many contexts, but do you know what is NOC Full form? The NOC Full Form is a No Objection Certificate is a legal document that will be issued by any organisation, agency or even by any individuals stating that they do not have any objection to the content mentioned in the document.
NOC is an essential document, especially when you have availed of any kind of loan. It could be a home loan, a personal loan, a vehicle loan etc. When you close the loan by paying back the entire dues in the loan, you should insist on a No Objection Certificate, which states that the entire dues under the loan have been cleared and the loan stands closed as per the records of the bank.
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NOC Full-Form No Objection Certificate is issued by any organisation or agency stating that they do not have any objection to the covenants mentioned in the certificate. In the case of a loan closure, financial institutions will issue a No Objection Certificate stating that the customer has cleared all the dues under the loan and the loan stands closed as per the records of the institution. With the issuance of the No Objection Certificate, the financial institution acquits its rights on the collateral security offered for the particular loan.
The NOC issued by the financial institution will contain the following details:
Generally, the banks/NBFCs will send the NOC to your contact address in their records once the loan is closed. If you have changed your contact address during loan tenures, you will have to get it updated in the records of the bank/NBFC.
Colleges will issue a NOC when the student has paid the fees as per the fee structure.
An Employer will issue a NOC when the employee resigns and has fulfilled all the duties assigned to him/her to the satisfaction of the employer.
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The following are the advantages of the NOC.
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The following loans would need a NOC.
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Generally, the banks/financial institutions dispatch the NOC to the contact address in their records once the loan is closed. But you cannot take it for granted that the NOC will be dispatched as a routine on the closure of the account. It is your responsibility to get the NOC within the time frame to avoid future complications regarding the settlement of the loan.
To obtain a NOC, you will have to submit a request to the bank/financial institution asking for a NOC and also to return all the original documents, if any, submitted while availing of the loan.
There is a provision to obtain a duplicate NOC in case the NOC is lost or misplaced. The procedure to be followed to apply for a duplicate NOC is given below.
After availing of a loan, you would be focusing on payment of EMIs on time and putting in all efforts to close the loan well within the time to avoid interest cost. But you would not have given a thought to the aspect of obtaining a NOC after closing the account. With this article, you have got an idea about the NOC's full form, its advantages, its implications and the way to obtain one. If you have availed of a loan, then do not forget to obtain a NOC after the closure of the account.
NOC full form is the No Objection Certificate. It is issued by organisations and agencies to state that they have No Objection to the covenants mentioned in the legal certificate. NOC in banking terms is obtaining a certificate that states that the borrower has closed the loan on a certain date and there are no dues pending towards the loan. The loan closure process will be complete only on the obtention of a NOC from the bank/financial institution.
NOC is required for the following reasons:
For cancellation of hypothecation at the concerned RTO, you will have to submit the following documents along with the hypothecation cancellation request:
On submission of the request, the required data will be recorded by an official and the details and your documents will be approved by another official. Pay the stipulated hypothecation cancellation fees and submit the receipt to the official who approved your documents.
A specific date will be given for the collection of the new RC book with the hypothecation cancelled. You can collect the revised RC on that date.
Yes. You can apply for a duplicate NOC by providing an FIR copy (for having filed FIR for the loss of NOC) and a copy of loan documents submitted at the time of availing of the loan.
The NOC will be valid for six months from the date of issue.