The term NOC letter is well known to all home loan borrowers who have availed the home loan from the lender Banks/NBFCs/HFCs. Undoubtedly, they must also be well-versed with the fact- what NOC stands for and its significance in home loan. Irrespective of the NOC certificate’s significant role in the home loan, we find very little is spoken about how, when, why and from whom to obtain the NOC for home loan. The blog therefore is written to highlight instances when the NOC needs to be obtained and
why it is important to have a No objection certificate for home loan.
Meaning Of NOC – Home Loan NOC
NOC stands for “No Objection Certificate” and is a legal document issued by the lender/borrower/concerned authority stating that they have no objection to the mentioned details in the documents. At times also referred to as “No Due Certificate”or “No Objection Letter”, obtaining the NOC for housing loan from the following is of vital importance in home loan/mortgage loan.
- Builder NOC for home loan OR NOC letter from society.
- Sibling NOC for home loan.
- NOC from bank for home loan closure.
All the three above are to be obtained in the prescribed bank NOC format. Each Bank/NBFC/HFC have their own prescribed NOC format for home loan.
What Is Home Loan NOC
Home loan NOC letter is used in three contexts in the mortgage industry, each of which is pivotal in the home loan mortgage industry. Lets understand each, and find what does the home loan NOC certificate means.
- NOC from builder for home loan & NOC from society for home loan:
At the time of home loan disbursement the ledner Bank/NBFC/HFC demands a no due certificate for home loan in order to avoid legitimacy for funding the property. The borrower has to obtain the Bank NOC letter on the letterhead of the respective authority i.e. builder, society, government housing authorities such as MHADA, CIDCO, KDMC, MMRDA , etc.
In case of builder under-construction/ ready to move properties or resale properties where the society is yet to be formed the no objection letter for bank needs to be obtained from the builder or from the respective housing authorities. (Purchasing An Under-Construction Property? Here Are The Important Loan Facts You Must Know Before Making A Purchase). In case of resale/ ready to move property purchase where the society is formed, the NOC needs to be obtained from the society.
Importance Of Home Loan NOC
The NOC contains the following important information
- The name and the property address of the borrower.
- Name and address of the lender Bank/NBFC/HFC.
- Concerned authorities acknowledgement.
** Builder – builder name, sign and stamp.
** Society – society stamp and sign of the secretory, chairman or president.
** Housing authorities- stamp and sign of the authorities (MHADA, CIDCO, KDMC, MMRDA , etc.)
Everytime a borrower wishes to shift his home loan i.e. balance transfer his home loan from one lender to another, each time a fresh NOC from the society/builder needs to be submitted to the new lender Bank/NBFC/HFC. (Click to learn more on the Benefits of home loan transfer.)
(Contact Loanfasttrack for Mhada NOC for home loan.)
The NOC is indicative of the following:
- The saleable property is free from any encumbrances, has a clear and marketable title.
- The builder has the necessary permissions/approvals as well as the sanctions for the construction from the competent authorities. – For builder property purchase.
- The construction of the building as well as the property is according to the approved plans. For builder property purchase.
- There are no pending dues, maintenance,etc. of the property owner.- For resale property purchase where society is formed.
- The builder/society has no objection to the said owner for mortgaging the said property with the lender Bank/NBFC/HFC.
(Contact Loanfasttrack for society NOC format for HDFC home loan.)
2. SIBLING NOC
Sibling NOC is an NOC to be obtained from the brothers/sisters of the mortgage loan applicant/borrower. It is generally required in mortgage loans where the property is registered in parental name or is jointly owned with the parents while one of the children apply for a mortgage loan with the lender Bank/NBFC/HFC. Vb The sibling NOC states that the sibling-brothers/sisters has no objection towards the mortgaging of the said property with the concerned lender Bank/NBFC/HFC by their sibling applicant. Fresh NOC needs to be submitted to the lender each time the borrower switches his home loan from one lender to another. (Looking for home loan refinance? Here are the important things you must know.)
(Contact Loanfasttrack for sibling NOC format for property mortgage.)
3. Receiving NOC from bank for home loan closure
Such NOC needs to be obtained from the lender Bank/NBFC/HFC on successful repayment of the home loan to the lender. When the loan is paid off completely including the closure charges, outstanding dues or overdues the lender issues the NOC for home loan closure to the borrower indicating that the borrower does not owe more to the lender and to unmark the lien marked on the property pledged with the lender to avail the home loan. The closure NOC is of vital importance because it documents the closure of the borrower’s home loan. If the closure is not documented properly it may hamper the credit rating of the borrowers making it difficult for their future borrowings. Remember, if the borrower does not have a closure NOC, the home loan is yet not closed even though he has paid the last instalment towards the home loan. (Is your CIBIL low? Loanfasttrack’s blog will be helpful, read – How To Apply For Home Loan With Bad CIBIL Score.)
Also read: CIBIL & its significance in home loan.
(Contact Loanfasttrack for application for NOC from Bank for home loan closure.)
Home Loan Comparison Chart Of The Top Banks
|Bank Name||Rate Of Interest||Processing Fees||Tenure|
|ICICI Bank||6.90% p.a. – 8.05% p.a.||0.30% of the loan amount + applicable GST||Up-to 30 years|
|HDFC Ltd.||6.90% p.a. – 7.85% p.a.||Up-to 0.50% – up-to 1.50% of the loan amount + applicable GST||Up-to 30 years|
|Canara Bank||6.90% p.a. – 8.90% p.a.||Rs.10,000/- + applicable GST||Up-to 30 years|
|CLICK to get the complete chart|
Loanfasttrack is a Mumbai based loan provider company since 2015 offering loan services in Mumbai on– housing loan in Mumbai, mortgage loan in Mumbai, personal loan in Mumbai, business Loan in Mumbai, unsecured business loans,home loan transfer, top-up loans and loan transfers. Loanfasttrack is a direct sales associate with leading banks namely, ICICI Bank, HDFC Ltd, Canara Bank, Citi Bank, Piramal Housing Finance, etc.
Loanfasttrack’s specialized services includes providing:
- The best bank for home loan.
- Best Banks For Mortgage Loan In India
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Click to know more for home loan with
|ICICI Bank||HDFC Ltd.||Canara Bank||SBI Bank|
|Axis Bank||Bank Of India||Bank Of Baroda||Kotak Mahindra Bank|