What is a No Due Certificate & How to Get It in India

Updated on Thursday, October 15th, 2026 | By IndusInd Bank

Summary

• A No Due Certificate confirms that the borrower has cleared the loan’s outstanding amount.
• Collect it after the loan is fully repaid or foreclosed, along with the final loan statement and closure confirmation.
• Check that it shows your name, loan account number, closure date and zero outstanding balance.
• Keep a digital and physical copy in case the closed loan is reported incorrectly later.

Finishing a loan is an important financial milestone. However, paying the final EMI is not the only thing to do. You should also collect proof that the loan account has been closed and that no amount remains payable.

A No Due Certificate is one such document. It can help you maintain proper loan records, resolve future queries and show that the loan was settled in full.

What is a No Due Certificate (NDC)?

A No Due Certificate, also called an NDC, is a document issued by a lender after all dues on a loan have been cleared. It confirms that the borrower has paid the principal, interest and applicable charges, and that no amount remains outstanding.

For a personal loan, the NDC acts as written proof that the loan account has been closed. The lender may also call it a loan closure letter, clearance letter or No Objection Certificate, depending on its process.

After closing a personal loan, it is good practice to retain the final payment receipt, loan statement showing zero balance and the NDC.

When is a No Due Certificate Required?

An NDC is most useful after you pay the last EMI, foreclose a loan or settle a loan account in full. It gives you a record that the lender has no outstanding claim against you for that specific loan.

You may need it when updating records, resolving a credit-report discrepancy or responding to a future query from a lender. It can also be useful after closing an asset-backed loan, where you may need to remove the lender’s charge or lien.

For a new loan application, RBI has advised banks not to insist on an NDC from individual borrowers as part of regular credit appraisal. Banks can use other checks such as credit information reports instead. Even so, keeping your own closure documents remains important.

Types of No Due Certificates

No Due Certificates can be issued for different financial or service-related obligations. A loan NDC is the most relevant type for borrowers and may relate to a personal loan, home loan, vehicle loan, business loan or education loan.

Other organisations may issue NDCs for utility bills, housing-society dues, tax-related payments or employment clearances. The purpose is similar: to confirm that no amount is pending against the person or account.

For a loan, always make sure the certificate clearly identifies the loan account. A generic letter without the account number may not be enough if you need to resolve a future dispute.

How to Get a No Due Certificate from a Bank

Once your loan is fully repaid, check whether the lender issues the NDC automatically. If not, submit a request through its online portal, customer-care channel or branch, as applicable.

Keep your loan account number, registered mobile number and final payment details ready. If you foreclosed the loan, retain the foreclosure statement and payment receipt as well.

Before requesting the certificate, make sure all dues have been settled. This can include the principal, interest, late charges, foreclosure charges or other amounts mentioned in the final loan statement. The lender can issue the certificate only after the account shows a zero balance.

Documents Required for No Due Certificate

The lender may ask for basic loan and identity details while processing the request. These can include your loan account number, PAN or other identity proof, registered mobile number and a written or digital request.

You may also need the final EMI receipt, foreclosure payment receipt or a copy of the latest loan statement. If someone else is collecting the document on your behalf, the lender may require an authorisation letter and identity proof.

Requirements can differ by lender. Use only the lender’s official channel and do not share loan information through unverified links or messages.

No Due Certificate Format & Sample

A loan NDC should be issued on the lender’s letterhead or through an authenticated digital document. It should include the borrower’s name, loan account number, loan type, closure date and confirmation that no dues remain.

A simple format may read:

This is to certify that [Borrower Name], holding Loan Account Number [XXXX], has cleared all amounts payable under the loan. As of [Date], the outstanding balance is ₹0, and the loan account stands closed.

It should also carry the lender’s authorised signatory, digital authentication or other official verification details. Check every detail before accepting it.

Difference Between No Due Certificate and NOC

A No Due Certificate confirms that no payment is pending on a loan or account. It focuses on the financial status of the borrower’s dues.

A No Objection Certificate, or NOC, states that the lender has no objection to a specific action. For example, after a vehicle loan is repaid, an NOC may be needed to remove the lender’s hypothecation from the registration record.

For personal loans, lenders may use NDC, NOC and loan closure letter in a similar way. Still, check the document wording if a particular authority or institution has asked for one of them specifically.

How to Download No Due Certificate Online

Some lenders allow borrowers to request or download a no dues certificate online after the loan account is closed. Log in only through the official website, mobile app or loan portal and look for options such as “Service Request,” “Loan Closure” or “Documents.”

If the document is not available for download, raise a service request and keep the reference number. You may receive the certificate through registered email, the portal or the lender’s branch.

Download the document from the official source and save a copy in cloud storage or your email folder. Do not rely only on a screenshot of a zero-balance loan account.

Benefits of Having a No Due Certificate

An NDC is useful proof that you have completed your repayment obligations. If a loan account is shown incorrectly as active or overdue later, the certificate and final loan statement can support your request for correction.

It also helps you keep your financial records organised. When you apply for another Personal Loan, clear documentation of previously closed accounts can make it easier to answer any questions about your borrowing history.

Most importantly, it gives you confidence that the loan closure process is complete and that you have collected the important records.

Risks of Not Having a No Due Certificate

Not having an NDC does not mean that the loan remains unpaid. However, it leaves you with less documentary proof if there is a reporting error or disagreement about the account’s closure.

A closed loan that continues to appear as active or overdue in a credit report can affect future borrowing. Without the NDC, final statement and payment receipt, it may take more effort to establish that the loan was settled.

Keep the documents for several years, even after the loan is no longer visible as active in your credit report. It is easier to preserve proof now than to recreate it later.

Keep Your Loan Closure Records in Order

After the final EMI or foreclosure payment, do not treat the loan as completely finished until you have checked the account status and collected the closure documents.

Request the NDC, review it carefully and ensure that the loan account shows a zero outstanding balance. Store it with the final statement and payment receipt. These small steps can save you time if any issue arises in the future.

Also Read: What are Personal Loan Foreclosure Charges?

Frequently Asked Questions

1. Can a No Due Certificate be requested for a partially prepaid loan?

A final NDC is usually issued only after the entire loan is closed and no amount remains outstanding. For a part-prepayment, ask the lender for a payment receipt and an updated loan statement instead.

2. How soon after final payment should the certificate be issued?

The timeline depends on the lender’s process and the time taken to confirm all charges and close the account. Follow up after the account reflects a zero balance and keep your final payment proof ready.

4. What details should be checked before accepting a digital certificate?

Check your name, loan account number, closure date and the statement that no dues are outstanding. Also verify that the document is issued through an official lender channel and carries valid digital authentication.

5. Can a lost No Due Certificate be reissued?

Yes, lenders can usually issue a duplicate NDC or loan closure letter on request. You may need to complete a service request, provide identity details and pay a duplicate-document fee if applicable.

6. What can a borrower do if the lender delays issuing the certificate?

Raise a written service request and retain the reference number, closure statement and payment receipt. If the issue remains unresolved, escalate it through the lender’s official grievance-redressal process.