If the loan is repaid, do not forget to take this paper from the bank, later you will have to cut the court-court affair.
If you want to transfer the balance of the loan in future, then NOC is the most important document for that. Without NOC, you cannot transfer the loan balance. If the loan is to be transferred from one bank to another bank, then NOC is required for that. Also Read: Bank News: Why Rs 177 is being deducted from the bank account? Know why
You took the loan and kept paying its EMI EMI on time. Proving himself as a good creditor, paid all the loan amount on time. You paid every penny of principal and interest. Now the question is, are you free from all the responsibilities after repaying the loan? In principle the answer is yes. But if you ask the experts, they will say something else. Also Read: EPFO member file e-nomination and get benefit of Rs 7 lakh, file e-nomination sitting at home
Experts of loan and loan transactions from banks say that repaying the loan on time is a good thing. But this does not free you from all the hassles. The biggest responsibility comes only after repaying the loan money. It is the responsibility of getting approval from the bank. It has to be taken in writing from the bank that now no loan is left unpaid. The creditor is now completely free from the repayment of the debt. Keep in mind that this work should not be verbal. For this the bank has to issue a certificate. This certificate is called No Objection Certificate or NOC.
When NOC is in hand, the creditor should understand that he is completely free from debt. This certificate is not just a piece of paper but a complete legal document. By getting NOC, you are legally protected. No claim will be made against you later by the bank. Even if the bank commits any fraud, then you can drag it to the court through that legal document. Let us know why it is necessary to take NOC from the bank.
1- Will be saved from blackmail
Suppose you did not take NOC even after paying the full amount of the loan. In such a situation, big trouble can arise. The bank may also ask you for the money that you have already paid. Now since you do not have any proof to repay the loan and finish the loan, then you can become a victim of blackmail at the hands of the bank. You will not have any ground to go to court. Therefore, as fast as you have repaid the loan, you should also inculcate the habit of taking NOC with the same speed and promptness.
2-You can get sued
If you do not take NOC, then the bank may sue you. There may be preparations to surround you in court on some small mistake in the past. In this situation you will be helpless and helpless as you will have no legal basis. You can present your case in the court and the court can ask the bank to give NOC. But till the time you get NOC, you may have to go through many types of mental torture.
3- Credit score will be written off
After repayment of the loan, it is your obligation to inform CIBIL immediately. Tell CIBIL that NOC has been received after repaying the loan from such bank. If you do not take NOC, do not tell CIBIL, then you can be declared a defaulter in its records, which will affect the credit score. You may have to go through many troubles in taking a loan next time.
4- Help in doing balance transfer
If you want to transfer the balance of the loan in future, then NOC is the most important document for that. Without NOC, you cannot transfer the loan balance. If the loan is to be transferred from one bank to another bank, then NOC is required for that. If this paper is not there then the bank will not initiate the loan transfer process.
