Simple Process to Download NOC Certificate for Loans

A home loan is a long-term commitment. Though these loans are affordable and housing loan interest rates are currently quite low, most people choose to repay their housing loan over two or three decades and therefore, these loans majorly impact the way a person lives. It is, therefore, not very surprising that the major agenda on most home loan borrowers' lists is to try and repay their housing loans and become debt-free as quickly as possible. Borrowers can clear their housing loans by making prepayments and increasing their EMI payments with time. Individual borrowers on floating interest rates can even consider foreclosing their loan since these borrowers can prepay and foreclose their loan at any given time without paying any penalty. 

If you are planning to foreclose your loan or have already done so, do not forget the NOC certificate download. Before we get to the details of the process to download a home loan NOC, let us understand what is NOC or No Objection Certificate and why is it important. 

What is Home Loan NOC or Home Loan No Objection Certificate? 

After a home loan borrower has cleared all home loan EMIs, they must make sure their lender releases the no-objection certificate. The NOC or no-objection certificate is a legal document that relinquishes any rights your lender may have over your home or property bought with the loan money. The home loan NOC contains important details, such as your name, the date on which the loan was availed of and the date on which you paid the last EMI, the borrower's loan account details, the address of the property bought with the loan money, etc. Further, the home loan NOC must also clearly mention that the home loan borrower has repaid their loan in full and therefore, the lender does not have any legal rights over it. Let us now discuss the importance of NOC and why a home loan borrower must mandatorily ask for this document after they have repaid their loan. 

1. When an applicant applies for a home loan, the lender asks for certain documents. These documents help lenders gauge an applicant's repayment capacity and decide the terms and conditions of the housing loan to be extended to them. After a borrower has repaid their loan in full, they must collect all the documents they had submitted to the lender, especially all the property documents. Lenders usually release these documents along with the NOC. This is why home loan borrowers must ask for the NOC as soon as they have repaid their loan. 

2. Once a home loan borrower has cleared their home loan, they must obtain the NOC and submit it to CIBIL. This is important as only after you have submitted the NOC, will CIBIL update your credit rating. Successfully repaying your loan will help you improve your credit score and this will increase your chances of getting approved for a loan in the future. A good credit score will also grant you high negotiating power, allowing you to ask for better home loan interest rates and a loan tenor that works best for you.

3. Lastly, if there is ever a dispute between you and your lender, the home loan NOC is the document that will save you. It is a legal document that states that the property currently belongs to you and no one else has any rights over it. 

These reasons make it crucial that you ask your lender for the NOC. Ideally, after a borrower has repaid their loan, the lender must release the NOC on their own. However, if your lender forgets to do so, you can request the No Objection Certificate. You can even go ahead and download the No Objection Certificate on your own. Here's how to download a home loan NOC.

How to Download Your Home Loan NOC? 

Once you have closed your loan account, your lender will send you the home loan NOC along with all the other documents. However, if for some reason, they do not send you this important legal document, you can download the document yourself. To download your home loan NOC, simply follow these steps: 

1. These days, most lenders offer online account management. To download your home loan NOC, simply go to your lender's website and log in using your details.

2. Once logged in, go to the loan details option. There, you will find the option to download your home loan NOC. 

Please keep in mind that once you have downloaded the NOC certificate, you will have to visit the Registrar of Properties' office along with someone from your lender's office to get the lien of hypothecation removed from your property.

A home loan NOC is a very important document. Make sure to ask for this document after you have closed your loan. Once you have it, keep it safe somewhere. While one can always get a second copy of their NOC, the process is not easy. So, keep this document safely with you.