What Is a NOC (No Objection Certificate)?
A No Objection Certificate (NOC) is an important legal document issued by a lender such as a bank or financial institution after you have completely repaid your loan. It serves as proof that you’ve cleared all your dues and that the lender has no further claim or objection against you or the asset associated with the loan. In simple terms, the NOC is your final confirmation of loan closure. Without it, your loan account may remain “open” in official records which can cause issues in your credit score, future loan applications, and even ownership transfer of collateral-based loans.
Why Is a NOC Important?
1. Proof of Full Repayment
It certifies that all principal, interest, and charges have been fully paid, and the lender has no pending claims.
2. Updates Your Credit Record
The NOC allows your bank or lender to inform credit bureaus (like CIBIL, Experian, etc.) that your loan is officially closed. This helps improve your credit score and prevents incorrect “active loan” entries.
3. Prevents Future Disputes
Having an NOC ensures that you’re legally protected from any future claims or errors related to that loan account.
4. Essential for Secured Loans
For home, car, or mortgage loans, the NOC is mandatory to remove the lender’s lien on your property or vehicle and transfer full ownership to your name.
Why Is a NOC Important?
A valid No Objection Certificate typically includes:
• Your full name and loan account number
• Loan type and details (personal, home, vehicle, etc.)
• Confirmation of full repayment and closure date
• Statement that the lender has no further claim
• Signature and stamp from the authorized bank official
Always ensure that your NOC includes all these details and is printed on official letterhead.
How to Obtain a NOC After Loan Settlement
1.Verify Your Loan Status
Confirm with your lender that the loan has been completely settled including interest, penalties, and any pending charges.
2. Request the NOC in Writing
Submit a formal request (via email or letter) to your bank’s loan department or relationship manager.
3. Follow Up Regularly
Many lenders take 15–30 days to issue the NOC after final payment. Continuous follow-up ensures you receive it without unnecessary delay.
4. Collect and Store Safely
Once received, keep both physical and digital copies of your NOC securely. It’s an essential lifetime record.
What Happens If You Don’t Receive an NOC?
Not receiving your NOC can create serious complications:
• Your credit report may still show an active loan, affecting your CIBIL score.
• You may face calls or notices from recovery agents despite settling.
• You cannot remove lien marks or claim full ownership of your asset.
At SettleRoot
We’ve seen many cases where clients paid off loans but never received their NOC leading to prolonged stress and credit issues. That’s why we provide Post Settlement Protection (PSP) to ensure your loan closure is fully completed and your NOC is received without hassle.
Our Post Settlement Protection (PSP) service ensures:
• Timely follow-up with lenders for NOC issuance.
• Verification of loan closure
• Assistance in resolving NOC delays or disputes.
• Guidance to update your credit report accurately.
How to Rebuild Your Credit Score After a Loan Settlement
Credit score is a reflection of your financial discipline and repayment history. It plays a vital role in determining your eligibility for loans, credit cards, and even housing or employment opportunities. However, many individuals find their credit score affected after events like loan defaults, missed EMIs, or settlements. A low credit score doesn’t mean your financial journey is over it simply signals the need to rebuild. At SettleRoot, we believe that financial recovery is possible for everyone. Through our Credit Rebuilding Service (CRS), we guide you step-by-step to correct inaccuracies, restore credibility, and improve your overall financial health.
Why Credit Score Rebuilding Matters, a strong credit score is the foundation of financial stability. It determines not only your ability to borrow but also the interest rates you receive and the trust lenders place in you. Rebuilding your score after a settlement is crucial for several reasons:
• Restores Financial Credibility: Demonstrates to lenders that you are committed to responsible credit behaviour.
• Improves Loan Eligibility: A higher score increases your chances of loan approvals and better terms.
• Reduces Financial Stress: Knowing you have a clean credit record boosts confidence and peace of mind.
• Builds Long-Term Stability: A good score lays the foundation for future financial growth and opportunities.