Personal loan
Every month the installment of personal loan is filled, when the last EMI is cut, then there is a great relief and it seems as if this debt is now completely over. But just wait, if you have thought that now the loan has been missed, then you are in a hurry.
Actually, even after the last installment, there is an important work left, which can be ignored in the future. Explain that after repaying personal loan, the most important work is to take No Dues Certificate (NOC or NDC).
What is a no deuse certificate?
There is an official letter received from the No Dues Certificate, Bank or Financial Institution, in which it is clearly written that you have repaid the entire loan and now no amount is outstanding. This certificate shows that you have not only paid the principal amount but also the interest on it and any other charge. As soon as this certificate is received, the bank accepts your loan closed.
Why is it so important to take NOC?
Many people think that after filling the last EMI of the loan, the work is over, but if you do not take NOC, then you may have to face many problems in the future. Suppose you repaid the loan, but there was a technical disturbance in the bank’s record and later the bank said that some amount is left, then you have only NOC the only evidence that you have paid everything.
Apart from this, this certificate also makes your credit score strong. When the Credit Bureau comes to know that you have repaid the loan on time, your credibility increases and it is easy to get a loan or credit card in the future. Often, banks themselves send this certificate after the last EMI, but if NOC is not found in 2-3 weeks, then you should go to the bank or demand it through online netbanking.