If you have taken a loan or make frequent financial dealings in credit of any form, you must organise records of all your transactions for at any time, there might be any kind of disputes that might arise. Documentation of these transactions brings in a certain form of clarity in case of any form of discourse. Two such documents that every debtor must have are the No Objection Certificate (NOC) and the No Dues Certificate (NDC).
No Objection Certificate (NOC) is a document of proof which confirms that there are no objections or claims against a particular transaction. On the other hand, a No Dues Certificate (NDC) is a certified document that declares that all dues have been settled towards any form of credit. NDC and NOC are issued by relevant authorities most of the time in matters of property transactions (transfer, sale, lease), loan foreclosures/ closures, vehicle sale or transfer, and other such cases
If you have taken a loan from Bajaj Finance and have closed the same, you can easily get your NDC or NOC. All you have to do is log into your account and from there, it is a pretty straightforward process to get your No Dues or No Objection Certificates. However, before we come to how to get your NDC or NOC using Bajaj Finance's customer portal, let us understand the role of NDC and NOC in the financial realm.
What is a No Objection Certificate (NOC)?
Most commonly known as NOC, a No Objection Certificate is a legal document of consideration. This document contains details related to a transaction and is generally around a loan that has been recently closed by a borrower. By issuing a No Objection Certificate to a borrower, the lender confirms that they have no objections to the borrower making any form of other transactions or using a security provided to get another loan or that all loans taken against the provided security are paid off or settled in full. This helps the borrower in ensuring that there are no disputes that arise for him/her in the future.
The main purpose of an NOC is to provide legal clearance and to protect the interests of both the parties involved in a transaction. There are several scenarios that require an NOC which include transactions (give and take) outside the world of lending and borrowing. They can be listed as:
● Loan closure
When you repay a loan in full, such as a home or car loan, or any other form of loan, the lender issues an NOC to confirm that there are no outstanding dues and that the loan account is closed. In this scenario, a NOC becomes essential to clear any legal ties of the borrower with the lender and to update credit records.
● Property transactions
When it comes to property transactions, an NOC is often required to confirm that there are no pending legal issues or claims against the property being sold or purchased. It ensures that the transaction is free from disputes. An NOC provides peace of mind to both the buyer and the seller.
● Vehicle sales and transfers
When selling or transferring ownership of a vehicle, an NOC from the finance company (if the vehicle was first bought on a loan) and from the Regional Transport Office (RTO) is necessary. This document confirms there are no pending liabilities on the vehicle. These liabilities can be even the fines that might be pending against the vehicle.
Why should you obtain a No Objection Certificate?
An NOC acts as proof that there are no pending dues or issues. It simplifies various processes, such as loan closures, property transactions, and vehicle transfers, by speeding up the formalities involved. Also, holding an NOC from a previous loan or financial agreement boosts your credibility with financial institutions. It demonstrates that you have responsibly managed past obligations, thereby making you a favourable candidate for future loans.
What is a No Dues Certificate (NDC)
A No Dues Certificate (NDC) is a formal document issued by a financial institution like Bajaj Finance or any authority. It confirms that an individual has cleared all outstanding dues and has no pending liabilities. An NDC's primary purpose is to confirm that all financial obligations to the issuing party have been settled and there are no remaining debts or dues. Like NOC, there are several scenarios when you will need an NDC. Let's take a closer look
● Loan repayment completion
When a borrower repays a loan in full, the lender issues an NDC. This document certifies that there are no outstanding dues. This document is crucial for the borrower as it shows that the loan has been fully repaid and a financial institution cannot claim anything moving forward.
● Credit card dues clearance
An NDC is also issued when a credit cardholder pays off all outstanding balances. This certificate confirms that there are no pending dues on the credit card, which is essential for maintaining a good credit score and financial record.
● Closing utility accounts
When closing utility accounts, such as electricity, water, or gas, an NDC is provided by the concerned government authority. This confirms that all bills have been paid in full, and there are no pending liabilities payable to the utility provider.
Why is it important to obtain a No Dues Certificate
As discussed above, an NDC serves as an official record that all dues have been cleared. This document acts as a piece of evidence and demonstrates that you have fulfilled your financial obligations. This protects you from future claims and safeguards against any erroneous claims of unpaid balances.
Additionally, possessing an NDC positively impacts your credit score and credibility with lenders and service providers.
How to get your No Objection Certificate (NOC) from Bajaj Finance Limited
Once your loan is closed, you can obtain a No Objection Certificate (NOC) letter from Bajaj Finance Limited by visiting the Bajaj Finserv customer portal—My Account. Let’s understand this process in easy steps:
● Click on the 'Sign in' button to access the customer portal.
● Enter your mobile number and date of birth.
● Submit the OTP (one-time password) sent to your registered mobile number to sign in.
● Once logged in, navigate to the 'My Relations' section.
● Select the specific loan account for which you need the NOC.
● Go to the 'Quick Actions' section and click on 'View Statement'.
● Find the 'No Objection Certificate' option among your documents.
● Click on it to download your NOC
Some important points
● If you are looking to get an NOC for a home loan taken on an “unregistered property”, the procedure remains the same as above.
● For a home loan on a registered property, you need to go with a representative from the financial institution to the Registrar of Properties' office and get the lien removed before obtaining the NOC.
● For car loans, it must be noted that the financial firm issues an RTO form (Form 35) along with the NOC. Both these documents must be submitted to the Regional Transport Office (RTO) and your car insurance company.
How to download your No Dues Certificate from Bajaj Finance?
In case you have taken a loan from Bajaj Finance, you can download a No Dues Certificate (NDC) by following these easy steps:
● Login to your account with Bajaj Finserv with your registered mobile number
● Verify your details with your date of birth and proceed.
● Go to "My Relations" where your loan accounts are listed.
● Select the specific loan account for which you want to download the NDC.
● Find the 'No Dues Certificate' option among your documents.
● Click on it to download your NDC.
You can download the Bajaj Finserv App from the Play Store or App Store and follow the same steps to download your No Dues Certificate with ease.
To Summarise...
When you get a No Objection Certificate (NOC) and a No Dues Certificate (NDC), you basically have proof of your financial standing. These certificates confirm that all your dues and obligations have been settled, because of which you are preventing any future disputes.
If you have successfully closed your loan account with Bajaj Finance, you can easily download your NOC or NDC by logging into your account either through their website (www.bajajfinserv.in) or through the Bajaj Finserv App.
*Terms and conditions apply.
