June 18, 2024

Paull Ank Ford

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Home Loan Repaid? Well Now is a Great Time to get your Home Loan NOC – Know Why!

Want to close home loan? Here's what you must do - The Financial Express

Closing your home loan is no less a joy than graduating from a top university with flying colors. You are now stress-free, and can allocate some funds for your wants and leisure, having paid all the EMI. Repayment of a housing loan also means you get the sole ownership of your dream home without any conditions. Naturally, you might want to stash the loan papers under the mattress and never look at them again. However, there are a few more formalities that you should pay attention to after closing the loan. Only when you obtain closing documents and file them are you free to celebrate your homeownership. One such crucial document you must get after paying your home loan is NOC. 

Here is a brief guide on NOC and why you must get it after repaying the loan.  

What is NOC?

A No Objection Letter or NOC is a legal document that certifies that you have paid all your dues and the lender has no right or lien over your property. The NOC is issued by the lender and states that the property has been transferred back to you. Usually, the lender sends the NOC to you after your loan is closed. However, if they fail to do so, or there is a change in your address, you must request for it from the lender. 

What does NOC contain?

The NOC contains all the details of the home loan and your personal information like name, account number, property address, loan closure date, etc.  

Why do you need NOC?

  • To record loan repayment

You submit the original copies of various documents required for home loan. These documents remain with the lender until the loan closure. With NOC, you can claim all those original documents. The NOC also helps you record the loan repayment with the lender. After they have sent you the NOC, they can claim the repayment of any outstanding amount. 

  • To maintain your credit score

Once you have repaid the entire loan, it should be recorded in the credit report to ensure an accurate credit history. If you do not collect the NOC, your credit report will show an outstanding loan, which can adversely affect your credit score.  

  • For a documented proof

With a NOC, you have documented proof that you have repaid the loan. Therefore, in the future, you can prove with the NOC that you have no outstanding dues. 

  • To clear the way for further loans

With NOC, you have proof that you have repaid the loan. The loan repayment is recorded in the lender’s records as well as on your credit report. This makes it easier for you to avail loans with ease in the future.


While you are careful about all the procedures and formalities of availing and repaying the home loan, you must ensure to close the loan systematically too. The NOC is a document required for home loan that would ensure that the lender and the credit bureau are aware of your loan repayment and you face no hassle in the future.