Instant Online Loans in India

Cleared Your Instant Loan Dues? Here’s What You Should Do Next


Before applying for an instant loan, we spend hours figuring out the lowest interest rates, the best deals, and the most flexible terms. Unfortunately, we do not employ a similar degree of effort after the loan is closed. 

Most of us naturally assume that we don’t have any additional obligation once we are done settling our dues. However, this is isn’t always the case. Contrary to popular notion, you need to work on a couple of things after closing your active credit account. One of the most important things here is your ‘No Objection Certificate’.

If you don’t have your ‘No Objection Certificate’ you cannot prove that you have cleared your dues and are no longer in any existing financial obligation. This certificate is provided by your bank or lender once you fully pay off your loan. Attested and authorized by the lending institution, it is a valid legal proof attesting to the fact that you have settled your dues. 

Depending on your bank, you might also get a Statement Of Dues certificate that attests to the fact that you have paid your installments in time and your loan is currently closed. 

NOC and Credit Score

Despite paying off our personal loan, many of us don’t take the time to get our NOC simply deeming it irrelevant. But with CIBIL in the picture, only a few realize that their credit score will be considered when they apply for a new loan. Now, if the closure of your old loan hasn’t been updated on the credit report, it will invariably result in a low credit score. At this point, your NOC will come to rescue since it is a documented proof establishing that your old instant loan was fully repaid.

After you settle your loan, it is the responsibility of your bank or lender to update the current status of your loan to the credit bureau. Sadly, most banks/lenders fail to do this in the first instance. This is why it is important to have your No Objection Certificate. Additionally, you should also check your credit report at least once a month to weed out inaccuracies (if any). 

What To Do If I Misplace My NOC?

If you received your NOC previously and have somehow misplaced it, here are some of the things you should do. First, lodge an FIR regarding the loss of your document. Next, request a duplicate copy of the certificate to your lender. You will have to send a copy of the FIR along with your application to facilitate the process. That said, do note that it might take some time to get your duplicate No Objection Certificate. 

In a bid to simplify the hassles, most banks let you download the common NOC format from their websites. Whether you download a copy of it or get the certificate directly from the bank, do ensure it carries all relevant details of your loan along with a suitable mention of the phrase ‘no objection’.

Bottom Line

Now that you know why exactly you need a No Dues Certificate after clearing your instant loan dues, get the certificate immediately. If your bank hasn’t yet sent a copy of the certificate, visit its branch to get the document. 


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