What Is a No Due Certificate (NDC) & How to Get It After Loan Closure

Key Takeaways

A No Due Certificate (NDC) is a document issued by lenders confirming full loan repayment.
It serves as a proof of loan closure, helping borrowers avoid future disputes and maintain a strong credit profile.
Borrowers must request an NDC from the lender after repaying all dues.

17 Sep 2026 by Team FinFIRST

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Repaying an entire loan is definitely a sign of huge relief, but there’s more formalities attached to it. To confirm that there are no due amounts and to prevent future disputes, you require a No Due Certificate (NDC). This certificate serves as evidence that the loan has been fully repaid and the outstanding obligation to that lender has been settled. In this article, know all about the meaning of No Due Certificate, why we need a No Due Certificate and how to get it.

What is a No Due Certificate (NDC)

A No Due Certificate or NDC is a certificate given by a lender after a borrower has made full payment of a loan. It is a certification that no dues are pending, assuring the financial obligation of the borrower is cleared. NDCs can be used for all kinds of loans, such as personal loans, housing loans, automobile loans, and business loans.

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NDC, NOC and loan closure letter: Are they the same?

The terminology can vary between lenders and loan types, and these documents may serve overlapping purposes. An NDC generally confirms that no outstanding dues remain on the loan, while a loan closure letter confirms that the loan account has been closed. An NOC may be issued to confirm that the lender has no objection to a specific action, such as releasing a charge or transferring an asset.

For a personal loan, check the document issued by your lender to ensure it clearly confirms that the loan has been fully repaid and the account has been closed.

Why do we need a No Due Certificate?

An NDC is more than just a formality as it has several advantages:

It is an official letter stating you have settled your obligation with the lender.
An NDC provides documentary proof of repayment if there is a future discrepancy regarding the loan's outstanding balance or closure status.
Ensuring that a fully repaid loan is accurately reported as “closed” helps keep your credit report up to date and can prevent confusion when you apply for credit in the future.
For secured loans, borrowers should also ensure that the lender completes the applicable security-release formalities and returns any original property documents.

A no-due certificate is more than a document – it’s your financial passport to a debt-free future.

How to get a no-due certificate

After making your loan repayment, follow the below steps to get your NDC:

Check if all EMIs, interest, and charges are paid in full.
Approach your lender through their website, branch, or customer care to officially ask for an NDC.
The lender will check your account to ensure that there are no outstanding dues.
After verification, the lender provides the certificate, either in digital form or as a hard copy.

Once you receive your NDC, check your credit report after the lender has had an opportunity to report the closure and the credit bureau has processed the update. Since January 2025, RBI requires credit information to be updated and reported on a fortnightly basis or at a shorter interval as mutually agreed between the credit institution and credit information company.

If the loan continues to appear as active or outstanding after the expected reporting cycle, contact the lender and raise a dispute with the relevant credit bureau if necessary. Keep your NDC as supporting proof of repayment.

FIRSTmoney: Ensuring seamless loan closure

Loan closure is easy with FIRSTmoney’s personal loans. Borrowers enjoy:

Transparent and smooth loan closure processes with no hidden charges.
100% online loan management in which it is easy to request and track your No Due Certificate.
Flexible repayment tenures of 9 to 60 months, ensuring easy closure of the loan.
No foreclosure fees, allowing you to repay early without any additional cost.
FIRSTmoney offers loans starting from ₹ 50,000 up to ₹ 15,00,000, with flexible repayment periods of 9 to 60 months. FIRSTmoney instant personal loan also offers multiple on-demand loans, with amounts starting at ₹ 10,000.

FIRSTmoney provides digital loan management and customer-support channels to help borrowers complete the loan closure process and obtain relevant closure documentation.

Conclusion

A No Due Certificate is an important document that certifies your financial obligations are formally cleared. In the absence of an NDC, you might encounter inconvenience in future credit requests or asset transfer of ownership. Therefore, to avoid delays and secure a hassle-free financial future, always demand an NDC upon settling a loan.

If you want a personal loan that has clear terms and a seamless closure process, FIRSTmoney provides competitive interest rates and a hassle-free experience, ensuring you stay in control of your finances.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank 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 mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.