How to Get a No-Dues Certificate from a Bank?

byDilip PrasadLast Updated: April 19, 2024
How to Get a No-Dues Certificate from a Bank?

A no-dues certificate from the bank is an official letter confirming that the customer has cleared all the dues and is done with the full and final credit settlement. Moreover, this certificate nullifies the conditional ownership/ authority over the borrower’s collateral like a house, car, motorcycle, gold jewellery, etc.

This certificate acts as a formal assurance for the completion of the loan repayment, and customers will receive the certificate after the bank has verified all the details related to loan clearance. In case you do not get any no-due certificate from the bank in time, you must write a letter to the bank (branch manager) stating your request to issue the certificate. 

The due certificate consists of details like the receiver’s address, subject, date, and all the information related to your loan application and closure of the same. College students and employees also get a no-due certificate.

How to Write an Application to Issue a No-Dues Certificate? 

When requesting a no-due certificate from your lender, write a letter addressed to the branch manager of the bank where the loan was obtained. Include your contact details, loan information, and politely request issuance of the certificate. Upon verification of loan clearance, the bank will provide the certificate.

The section below highlights the no-due certificate format of the letter that you can stick to while requesting a no-due certificate from the bank. 

Mr./ Mrs.



The Branch Manager

Bank Name


Subject: An application requesting the issuance of a no-due certificate from the bank

Respect Sir/ Madam
I, Mr/ Ms. X, a resident of (Address) would like to state that all my pending dues against my loan of ₹X lakhs with XXXXXXXX account number are cleared. I applied for the loan on (date). Since I have cleared the loan amount, I request you to issue the no-due clearance certificate.

I shall be highly thankful if my request is granted and the NDC certificate is issued at the earliest

Thank You,
Yours sincerely

Mr/ Mrs. X
Contact Number: XXXXXXXXXX

Why You Must Have Your No-Due Certificate?

A no-due certificate marks the end of the loan cycle and confirms that the loan amount has been settled. Hence, the borrowers have no further financial obligations. 

If you are not in possession of the no-due certificate, it can have a negative impact on your credit score. In extreme scenarios, an individual might have to face financial loss as they can be asked to repay the loan amount once again if they cannot provide this document.

The no-due certificate is an important paper extended to the customer by the lender. You can only get your hands on it after you have cleared the pending dues. It is important to get the NOC letter format for the bank as it shows that you are debt-free. Borrowers tend to overlook the significant formality of getting the no-due certificate, ending up in last-minute monetary issues. It is imperative to get the no-dues certificate to fulfil the loan agreement.


Under what conditions might I not get the no-due certificate?

You will not get a no-due certificate from the bank if you have not paid all the debts.

Is it mandatory to get the no-due certificate?

Yes, you must mandatorily get the no-due certificate from the bank as it proves that you have cleared the entire balance owed.

Whom should I address while sending the bank no-due certificate?

You will have to write a letter to the branch manager or someone of a similar designation, requesting him/ her to issue the no-due certificate.

Is the No-Due Certificate and NOC the same thing?

Yes, No-Due Certificate and NOC are essentially the same thing.

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