What is a Home Loan NOC and why should you get it

A home loan NOC or no-objection certificate is a legal document issued by the lender which informs about the complete repayment of the home loan by the borrower. It also states that the lender has no longer any right over the property as collateral.

The home loan NOC document also contains other crucial information like the name of the borrower, loan account number,list of documents, date of loan closure, address of the property loaned amongst other details.

Why is a Home Loan NOC document required?

The following are the reasons, why you need a home loan NOC:

Removal of Lien: The home loan NOC document is a very important piece of document for loan closure, which needs to be submitted to the Registrar of Properties to get the lien of hypothecation struck off from the property and receive the copy of title deeds in your name.

Improves Credit Score: On the closure of a home loan, the NOC needs to be submitted to the CIBIL to get your credit profile and credit score updated in their database. The process is likely to improve your credit score if you don’t have any outstanding loans. This in turn, improves your home loan eligibility if you’re planning to buy a second home in the near future, thereby increasing your chances of getting lower home loan interest rates.

Can Sell Your Property: Once you have received the NOC or no-due certificate from the lender and transferred the title deed and other important documents of the property in your name, you can sell your property easily. In absence of proper documents, you cannot sell the property and even give your property as collateral to get a new loan.

Prevent Disputes: A NOC saves you from future disputes with the lender and prevents anyone from making any false claims on your property or charging any dues a few years down the line. With a NOC from the lender, you can contest any false charge or claim on the asset in a court of law. Having a NOC provides you with peace of mind, and provides you the deed, which makes you the rightful owner of your property by law.

How to get a Home Loan NOC?

On completion of the repayment of a home loan, lenders usually send the Home Loan NOC through a registered post to your registered address with the lender. However, the process of obtaining a NOC differs with every lender. Many lenders also provide the option of applying online through the customer portal.

The following are the general steps to obtain a Home Loan NOC:

• Reach out to the lender after paying the last EMI, and apply for NOC by filling up a simple form
• The lender processes your NOC application form by verifying the information provided by you
• After successful verification and processing of the application form, the lender sends the NOC through registered post to the address provided by you in the NOC application form

If you’ve not received your Home Loan NOC within a month of applying, you can check with your lender about its status.

Alternatively, you can also request your lender to collect the Home Loan NOC in person.

If you are a customer of SMFG Grihashakti and need an NOC, please call us at our toll free number 1800 102 1003 between 9.30 a.m.- 6.30 p.m. on weekdays and between 9.30 a.m. to 3.00 p.m. on Saturdays (excluding public holidays). Alternatively, please visit your nearest SMFG Grihashakti branch.

What happens if NOC is misplaced?

A Home Loan NOC is a very valuable piece of document, which ensures a smooth transfer of rights of property in your name. In case it gets misplaced, you need to file an FIR with the local police about the loss of NOC.

The copy of FIR along with loan details and other documents, as requested by the lender, needs to be submitted to the lender asking for a copy of NOC.

As compared to the earlier and fresh process, the issuance of a copy of NOC may take a longer time.

Final Words

You must have understood the value of Home Loan NOC and why you should not delay the process of loan closure soon after the payment of the last EMI. Because a delay can lead to several complications.

Also, while collecting the NOC, ensure it has all the relevant details about your house property, loan closure details, authentic validity, and is updated in the CIBIL database.