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"Closed your loan? Don’t forget your No Dues Certificate. Learn its meaning, importance, format, and how to get it from your bank easily."
Published: 1 May 2026
Your loan does not end the moment you repay your EMI. It is truly closed when the lender formally records that you owe nothing more. That final confirmation comes in the form of a no-dues certificate. This is a short but critical document that proves that your loan has been fully settled. It also protects your credit score and ensures that your lender has no remaining claim against you or your collateral.
In this blog, we will take a look at what a no dues certificate is and how you can obtain it.
A no dues certificate is an official document issued by your lender. It confirms that you have repaid the entire loan amount, including principal, interest, and any applicable charges. It declares formally that no outstanding dues remain against the loan account.
Once issued, the NDC serves as your legal proof of debt settlement. Without it, you have no protection if a lender's system later flags a pending amount. This can happen if pre-closure or part-payment records aren't updated promptly.
A bank no dues certificate has direct consequences for your credit profile and your legal standing.
This is why you must collect the no debt certificate promptly after repayment.
Let us take a look at how a loan no dues certificate is different from other certificates:
|
Document |
What It Confirms |
When It's Issued |
|
No Dues Certificate (NDC) |
All loan dues cleared, zero outstanding balance |
After full loan repayment |
|
No Objection Certificate (NOC) |
Lender has no objection to a specific action (e.g., vehicle transfer, property sale) |
After repayment, or when triggered by a transaction |
|
Loan Closure Certificate / Foreclosure Letter |
Loan is closed, often includes the account closure date and outstanding settled |
After full repayment or pre-closure |
A no dues letter from the lender is very different from a foreclosure letter. The foreclosure letter is issued when you prepay a loan before its scheduled end.
It is important to get a loan closure certificate from your bank. Here’s the general process:
Before applying, always check your loan account statement. Ensure the last EMI and all charges have been credited and processed.
Visit your bank or submit a request for a no dues certificate online. The request should include your full name, loan account number, and a brief statement confirming repayment.
Most banks ask for the last EMI receipt or foreclosure payment proof. For KYC verification, you will need your PAN and Aadhaar cards. Some lenders also ask for the original loan agreement copy.
The bank verifies repayment records internally. Some private sector banks and NBFCs can process it in as little as 3 to 5 working days for digital accounts.
Public sector banks typically dispatch the no dues certificate by post or require branch pickup. Digital lenders and NBFCs often deliver a password-protected PDF to your registered email ID.
Here are some of the documents required to get a loan no dues certificate:
Most public sector banks also require a written application addressed to the branch manager before issuing your no dues certificate.
Most lenders allow you to download the no dues certificate online:
Here is a sample format of a bank no dues certificate. The exact wording and layout vary by institution, but the core components are standard.
[Bank/NBFC Letterhead]
Date: DD/MM/YYYY
To Whom It May Concern
Subject: No Dues Certificate - Loan Account No.
This is to certify that [Borrower Full Name], residing at [Address], has fully repaid the loan bearing account number XXXXXXXX sanctioned on [Date of Sanction] for an amount of Rs. [Loan Amount].
As of [Date of Closure], all outstanding dues, including principal, interest, and applicable charges, have been settled in full. No amount is outstanding against the above loan account as of this date.
The lender has no further claims or rights over any assets pledged as security against the said loan.
This certificate is issued at the specific request of the borrower for record purposes.
Authorised Signatory
[Name, Designation]
[Bank/NBFC Name, Branch]
[Stamp and Seal]
The Bajaj Finance no dues certificate is among the most straightforward to obtain digitally. The document is available for download immediately after the loan account is marked closed in Bajaj's system. This typically takes 2 to 3 working days.
The SBI credit card no due certificate follows a slightly different path. For personal loans, the branch manager issues the NDC after internal verification. For credit cards, the NDC is issued after the outstanding balance is cleared.
The PNB no dues certificate process is primarily branch-driven. The bank requires borrowers to submit a written application at the home branch along with the repayment confirmation. The NDC will be delivered by email within 7 to 15 working days.
Getting the loan closure certificate is not the final step. Here's what to check after you receive the NDC:
The post-repayment process is quite simple. This is why you must know the common mistakes to avoid:
A no dues certificate is the document that formally ends your loan obligation. Without it, repayment alone isn't enough. Your CIBIL record may remain inaccurate, and you have no legal protection against future disputes.
If you're planning to understand the no dues certificate meaning or take a fresh loan, My Mudra will help you through the process. We will help you manage your credit profile so that it reflects accurately. At My Mudra, we help you compare personal loan and home loan offers from across 30+ banks and NBFCs, matched to your credit profile. Our eligibility check tool also lets you see real offers before applying.
Also Read:
- Difference Between Secured Loan and Unsecured Loan
- Types of Secured and Unsecured Loans
A no dues certificate is an official document issued by a bank or NBFC. It confirms that a borrower has repaid the entire loan with no outstanding amount remaining. It formally closes the lender's record of the debt and serves as the borrower's proof of repayment.
It isn't legally mandatory for borrowers to request one, but collecting it is strongly advisable. The RBI requires lenders to report loan closures to credit bureaus promptly, and the NDC is the trigger for that reporting. Without it, your CIBIL record may not update correctly.
The process depends on your lender. For most lenders, you may still need to submit a written request at the branch, after which the certificate is dispatched by post or email.
Both confirm repayment, but their purpose differs slightly. A no dues certificate declares that all financial dues are cleared. An NOC declares that the lender has no objection to a specific action.
Most banks and NBFCs process the NDC within 7 to 15 working days of verifying the final repayment. Digital lenders and NBFCs with customer portals may issue it faster, in 3 to 5 working days.
Yes. Select your closed loan account, and download the NDC from the documents section. You can also use the Bajaj Finserv app. The certificate is available only after the account is marked closed in Bajaj's system.
First, follow up in writing with the lender's branch manager or customer service. If the lender doesn't respond within a reasonable period, you can escalate the issue. You can also file a complaint under the RBI Integrated Ombudsman Scheme.
The NDC doesn't directly update CIBIL. But it's the document that triggers the lender to report your loan as ‘Closed’ to all Credit Information Companies. Once the lender reports the closure, CIBIL and other bureaus update your credit report.
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