NOC Full Form

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:

• Name
• Property Address (wherever there is a mortgage)
• Details of the loan
• Date of loan closure.

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.

The following are the advantages of the NOC.

• It is a legal document that serves as evidence to the Court of Law in case there is any dispute regarding the loan settlement.
• It can be present to clear any discrepancies that might arise in the future.
• You can upgrade your score by submitting the NOC to Credit Information Bureau like CIBIL.
• It will be convenient for you to get further loans from banks/other financial institutions.
• It is a legal certificate that indicates there are no monetary obligations towards the bank/financial institution anymore.

Additional Reading: How to get loans for bad credit?

The following loans would need a NOC.

• Home Loan
• Vehicle Loan
• Business Loan
• Loan Against Property
• Loan Against Shares
• Personal Loan

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.

• The moment you acknowledge the loss of the NOC document, you should file an FIR.
• Apply for a duplicate NOC by enclosing a copy of the FIR and the documents related to the loan along with the request letter.
• Once you receive the NOC, you should check for the correctness of the content.
• The bank/financial institution may take a long time to provide a duplicate NOC.

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.