What is NOC in Home Loan and Why is it important?

NOC (No Objection Certificate) is a legal document issued to the lender by the bank or the financing company to the customer. It is a declaration that states that the lender has no unsettled dues. You can obtain it from the lender after paying off the loan.

 

So what exactly is NOC?

NOC in the home loan is a document that states that all the loan on your property has already been paid off and now the lender has no right over your property. NOC document also acts as proof of the name of the loan bearer, loan account number, the date on which the loan was closed, and the address of the property.

 

It gives you a legal holder of the property you own which is very important in the case of a home loan. NOC in Home Loan is a much-needed document in order to get you any further loan for your property. It also shows how fast you paid off the previous loan which gives an overview of your financial health.

 

Once you have paid off your loan, you should ask for the NOC document from the bank or the financing company. Usually, the NOC is delivered to the registered address soon after the loan is paid off. 

 

While applying for a loan, You have to submit certain documents to the lender until the loan is paid off. With the help of a NOC, You can claim those documents after paying off the loan.

 

Features of NOC document

• This document is proof of your ownership of the property it is related to.
• This acts as a shield against any legal action taken to challenge your ownership of the property.
• It is necessary if you want to avoid any future problems or probable malpractice from the lender.
• NOC is important for your credit score, It is proof of your previously settled loans. Not having a NOC has a negative impact on your credit score. It might make it hard to get a loan approved.
• Having a NOC and alerting the CIBIL has a positive impact on your credit score.
•  If you have a NOC, getting any loans in the future becomes much easier because it is proof of timely deposit of your previous loan which makes a good impression on any lender.

If you own a property and seeking a loan regarding that property then having a NOC will make it safer and easier for you. The positive impact it has on your credit score is good for any future loans. It provides safety against any legal action. Any future lender will get an insight into your financial health and will provide you loan more conveniently.NOC is one of the most important documents you need whether you are looking for a home loan or paying off a home loan. So, Make sure to collect all your documents and NOC on time.