You might feel relieved after completing the repayment of your loan. But you are not done yet! You need to complete certain formalities to completely close your loan case. Obtaining a No Objection Certificate is one of the most important formalities that you should not forget. Other things include updating the RTO records and closing the hypothecation. Let’s understand what is NOC for bike loan and how you can get one.
What is NOC for bikes?
NOC, also known as the No Objection Certificate, is the certificate issued by the lender after the loan repayment is completed and you have cleared all the dues. It states that you have repaid all your dues towards the loan including EMIs and any interest or charges and you don’t have any amount outstanding against the loan.
Importance of a Two-Wheeler Loan NOC
Two-Wheeler Loan NOC is a very crucial document for the following reasons:
- Transfer of ownership: You need NOC to transfer your two-wheeler. NOC ensures that the two-wheeler is free from any encumbrance.
- RTO process: When you obtain a two-wheeler loan, a hypothecation is created in the name of the lender. NOC is important to transfer the registration in your name.
- Insurance claim: In case of any accident or damage to the vehicle, an insurance claim can be initiated. However, if the vehicle registration status is not clear, you may face obstacles in getting the insurance claim.
- Legal compliance: It is mandatory to transfer the ownership of vehicle in your name after the loan repayment. Failure to do so can result in legal complications in the future.
How to get NOC for a bike loan?
To get Two-Wheeler Loan NOC letter, you need to approach your lender. Make sure you have cleared all your dues including EMIs, interest and any penal charges. After having cleared the dues, you can ask the lender to issue NOC.
How to get an online NOC for a bike?
Certain lenders also provide NOC certificates for bikes online. You can log in to your lender’s website and search for the NOC option. If all your dues are cleared, your NOC will be generated, and you can download the same online or get it mailed to your mail ID.
Which documents are required to get an NOC for bike?
In case you visit your lender to obtain the two-wheeler loan NOC, you will need to carry your loan sanction letter or account number and your ID proof. They will check the status on their system and if all your dues are cleared, the lender will issue the NOC.
Also Read: Two-Wheeler Loans: a smart tool for vehicle purchase
Factors to consider while getting No Objection Certificate for bike
While applying for a two-wheeler loan NOC letter, you should ensure that all your dues against the loans have been cleared. Further, you should keep your NOC safe as you might need it in the future.
Difference between NOC and PUC certificate
Many people get confused between NOC and PUC certificate. NOC certificate is issued by the lender stating that you have cleared all the dues against your two-wheeler loan and there are no dues outstanding. PUC, also known as Pollution Under Control, is the certificate that states that your vehicle pollution is within the limits set by the government.
Procedure to cancel the NOC
If you were planning to transfer your bike registration to another RTO but have changed your mind, then you need to cancel your NOC. You need to visit the RTO to which the NOC was issued and obtain the Non-Utilisation Certificate (NUC). You will then have to submit the NUC to the RTO where the bike was originally registered to cancel the NOC.
In case you are searching for a good lender to finance your two-wheeler purchase, Axis Bank is the right choice. Affordable interest rates, 100% on-road finance facility and flexible tenures are features that make Axis Bank a preferred choice for the two-wheeler buyers. Visit Axis Bank now to bring your two-wheeler home!
FAQs
Q: Do I need to obtain a NOC for my bike?
A: Yes. You should obtain NOC for bike loan in India after completing the loan repayment.
Q: Can I get RTO NOC for my bike online?
A: Yes. You can get RTO NOC certificate for bike online by visiting https://vahan.parivahan.gov.in.
Q: Can I sell my bike without bank NOC?
A: You need to inform your bank if you are planning to sell your bike before completing your loan and obtaining NOC from the bank.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
