Importance of Obtaining NOC for a Bike Loanby Sapna Gandhi Marketing
The freedom and joy that riding a bike can bring is unparalleled, especially when you don’t have to depend on public transport or you can navigate your way easily on congested roads. And, thanks to affordable and easy bike loans being offered by many financial institutions these days, you don’t need to dip into your savings to buy your dream two-wheeler. However, no matter how small a loan amount is, unless you pay it back in full, you might feel stressed. Hence, paying all monthly instalments on time is essential. Plus, obtaining the NOC for a bike loan is also crucial when the entire debt is repaid. Only then you can enjoy complete peace of mind and call the two-wheeler your own.
What is NOC or a No Objection Certificate?
NOC or a No Objection Certificate is a legal document issued by the lender, which states that the loan repayment is complete and there are no outstanding dues from the borrower, as on a specific date (the date on which the NOC is issued). Whenever a person pays off a loan entirely, it is important to get this document from the lender. Obtaining an NOC in case of bike loans is especially important as it is this document with which the borrower can rightfully claim ownership rights on the vehicle.
Why is NOC important?
When you take a two-wheeler loan, the vehicle is hypothecated to the bank or the lender, which means that the bank retains the ownership rights on the vehicle until a time when the loan is completely paid off. Once the loan is paid off and the lender issues the NOC, the vehicle ownership is transferred to the borrower.
Many people tend to think that once all EMI payments are complete, the loan burden is off their heads, and they can live in peace. However, they forget about the NOC or don’t pay much attention to it. Now, there have been multiple instances where people have received legal notices years after paying off the loan. So, what follows is a legal hassle that can cost you time and money and also cause a drop in the credit score.
How to apply for NOC for a bike loan?
The process of obtaining an NOC is pretty simple.
• You have to write to your lender, mentioning your loan account number and vehicle details like RC number, the make and model of the bike, and chassis number.
• You will also need to attach the RC book with hypothecation in the name of the lender, along with a letter from the dealer.
• Once you send all the above information in the mail, the lender should typically respond within 7 days of the receipt of the email, asking you to collect the original documents and NOC.
• You can either collect the same from the branch, or you can get it sent to your registered postal address.
• However, it’s always better to collect these documents in person, to make sure that everything is in place. Talk to your lender though about how you can collect the documents.
To conclude, getting the NOC for a bike loan is important as this document officially marks the complete repayment of your loan. As it turns out, closing the loan with due formalities is as important as opening one!
Created on Jul 6th 2020 05:57. Viewed 2,011 times.
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