When it comes to loan closure, one crucial document ensures your financial record is clean: the No Due Certificate. Understanding the correct no due certificate format can save you from unnecessary future hassles, especially when you’re planning to foreclose a loan or switch lenders. In this article, we’ll break down what a No Due Certificate is, its importance in loan foreclosure, how to draft the right format, and what to do if your lender — say Bajaj Finance — fails to cooperate. We’ll also touch upon filing a complaint to RBI against Bajaj or any lender that doesn’t follow fair practices.
What is a No Due Certificate and Why is it Important?
A No Due Certificate (NDC) is a formal document issued by a lender confirming that the borrower has repaid the entire loan amount, including principal, interest, and other dues. It acts as legal proof that the borrower holds no pending dues and is free from obligations towards the lender.
Whether it’s a personal loan, home loan, vehicle loan, or credit card dues, obtaining an NDC is critical for:
- Protecting your credit score
- Facilitating future loan approvals
- Preventing unexpected recovery calls or charges
- Ensuring your collateral (like property or car) is legally free
Ideal No Due Certificate Format: What Should It Include?
While there’s no rigid government-prescribed template, the ideal no due certificate format should include:
- Lender Details: Name, address, and official seal of the financial institution
- Borrower Information: Full name, address, loan account number
- Loan Details: Type of loan, sanctioned amount, disbursal date, interest rate, and tenure
- Statement: Clear declaration that the loan has been fully repaid and no dues remain
- Closure Date: Date of final repayment and issuance of certificate
- Signatures: Authorized signatory of the lender and seal/stamp
- Reference Number: For tracking and validation
When and How to Request the No Due Certificate?
You should request the NDC immediately after making your final loan payment. Most banks or NBFCs, including Bajaj Finance, take 7–15 business days to process and issue the certificate. Here’s how to go about it:
- Repay all pending dues, including interest, foreclosure charges, and penalties (if any).
- Request foreclosure via customer care, online portal, or branch visit.
- Submit a written request for No Due Certificate after payment is confirmed.
- Collect acknowledgment for your request.
It is your right to demand a No Due Certificate, and lenders are legally bound to issue it. Failure to do so can be escalated.
Common Issues Faced by Borrowers: Bajaj Finance and Similar NBFCs
Many borrowers have faced issues specifically with NBFCs like Bajaj Finance when requesting a No Due Certificate. These issues include:
- Delays in issuing the certificate
- Improper closure of the loan account
- Negative reporting to credit bureaus despite full payment
- Unexplained additional charges added post foreclosure
If you’ve tried contacting Bajaj and faced uncooperative behavior or unnecessary delays, your next logical step is filing a complaint to RBI against Bajaj.
How to File a Complaint to RBI Against Bajaj or Any NBFC?
The Reserve Bank of India (RBI) provides an official redressal mechanism through the Integrated Ombudsman Scheme for resolving grievances against banks and NBFCs.
Here’s how you can file a complaint to RBI against Bajaj or any other lender:
- Exhaust Internal Redressal: File a formal complaint with the lender first and wait for 30 days.
- Visit RBI CMS Portal: Go to https://cms.rbi.org.in
- Choose “Lodge Complaint”: Select the appropriate category – NBFC in this case.
- Fill out details: Include loan account number, your grievance (e.g., not issuing No Due Certificate), and supporting documents.
- Track status: You will get a unique complaint number for follow-up.
Make sure you attach:
- Loan closure confirmation
- Proof of repayment
- Emails or letters requesting NDC
- Any irrelevant charges or statements
Impact of Not Having a No Due Certificate
Neglecting to collect your No Due Certificate may result in the following:
- Credit Score Damage: Loan may be reported as “active” or “default” on CIBIL or other credit bureaus.
- Legal Trouble: NBFCs may send recovery agents for amounts you don’t owe.
- Difficulty in Selling Assets: If the loan was secured, you can’t sell or transfer ownership without NDC.
- Disqualification for Future Loans: Banks may reject your application due to “existing obligations.”
Tips to Ensure Smooth Financial Closure
To avoid all these complications, follow these tips:
- Get a foreclosure statement and pay exactly what is due.
- Clear the loan through official banking channels—avoid cash settlements.
- Keep records: Save payment receipts, foreclosure letter, and email communications.
- Don’t leave without an NDC even if the bank staff tells you “it’s not needed.”
- Verify your credit report a month after loan closure to ensure it’s updated.
When Should You Escalate Matters?
If more than 15 working days have passed since your final loan payment and the lender hasn’t issued the No Due Certificate, escalate. You can:
- Email the grievance redressal officer of the lender.
- Tag them on social media with documented proof.
- File a complaint to RBI against Bajaj if the lender is non-compliant.
- Seek legal help in consumer court if RBI doesn’t resolve it.
Final Thoughts: Get Your Financial Closure in Writing
A No Due Certificate may seem like a formality, but it’s your key to a clean credit history and financial closure. Always ensure the no due certificate format is complete and correct. And in cases where lenders like Bajaj Finance fail to deliver, don’t hesitate to escalate. Filing a complaint to RBI against Bajaj or any lender is your right as a borrower. Keep your paperwork tight, follow up diligently, and protect your financial future.
Conclusion
In conclusion, a properly formatted No Due Certificate is more than just a piece of paper—it’s a safeguard for your credit score and financial reputation. Make sure you understand the correct no due certificate format and demand it after loan repayment. If any lender, including Bajaj Finance, refuses to issue the certificate or causes undue delays, escalate the matter swiftly by filing a complaint to RBI against Bajaj. Don’t let poor processes impact your financial health—take control, stay informed, and ensure a clean closure for every loan you repay.
