4 reasons why you should collect an NOC after your loan is complete

Published: Friday, October 3, 2014, 8:38 [IST]

If you have completely paid of your car, home or personal loans, please make sure that you collect the no objection certificate or NOC from the bank. It will clearly states that the loan is complete and you owe no dues on that loan account. Here are 4 reasons to collect the same.

1) Banks can be highly unpredictable

Sometimes banks can be a little unpredictable in the sense one cannot be sure. One individual recently recounted how a bank sent a letter to him despite his loan being complete. This can happen many years after the loan is complete and a letter can appear from nowhere. It's therefore best to take an NOC from the bank.

2) Cibil report

Sometimes there maybe a wrong report that is punched in or erroneously entered in your Cibil Ratings, regarding a loan that has been completely settled. A proof in the form of a NOC that the loan has been settled will hold you in good stead. This will ensure that your Cibil ratings reflect realty and you continue to remain creditworthy.

3) Legal proceedings

There have been cases where customers have received letters to face legal action, if they do not settle their dues. This is even after the dues had been settled earlier. An NOC helps you if there are any legal claims against you.

4) Notify the bank in case of change of address

We cannot always blame banks. Sometimes customers change their address and do not notify the bank. At other times they simply do not bother to collect the NOC.

Conclusion

In any case it's important that you take an NOC from the bank, once your dues are cleared. You do not want to regret at a later stage.

GoodReturns.in

Story first published: Friday, October 3, 2014, 8:38 [IST]