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The freedom of the open road on your own Two-Wheeler is a cherished milestone for many in India.
However, the journey to true ownership doesn’t conclude with the final Two-Wheeler Loan payment. Securing a Two-Wheeler No Objection Certificate (NOC) marks a crucial step towards complete independence and peace of mind on your rides.
In this blog, you will explore the importance of a NOC for bikes, and how it ties back to your loan.
What is an NOC (No Objection Certificate)?
An NOC for a Bike Loan is a legal document that confirms full repayment of the loan amount with no pending charges, hence it is also referred to as a No Dues Certificate.
Once this document is received, you will legally be relieved of the debt as it acts as proof of the fulfilment of your financial commitments regarding the Bike Loan.
Importance of NOC for Bike Loans
NOC of bike is crucial for individuals who have availed Bike Loans. It means the lender has no claim over your vehicle and won’t object if you decide to sell or transfer ownership.
In case of NOC of Bike Loan, it is either issued by the bank or an NBFC (Non-Banking Financial Company like TVS Credit
NOC for bike is essential for the following reasons:
- Ownership Transfer: If you plan to sell your Two-Wheeler, the NOC ensures a hassle-free transfer of ownership to the buyer, assuring that the vehicle is free from any existing loans or liabilities.
- RTO (Regional Transport Office) Process: After purchasing a Two-Wheeler through a loan, the vehicle’s registration remains in the lender’s name until the loan is cleared. The NOC for the bike is required to start the process of transferring the vehicle’s registration to the new owner.
- Insurance Claim: In case of accidents or damage to your Two-Wheeler, your insurance claim may be affected if the vehicle’s ownership details have not been updated. The NOC ensures a smooth insurance claim settlement.
- Legal Compliance: It is a legal requirement to update the ownership details of a vehicle with the Regional Transport Office (RTO) after loan repayment to avoid legal complications when transferring or selling the vehicle.
Additionally, the NOC is necessary if you want to remove or cancel the hypothecation of the bike from the registration certificate, or if you want to transfer the registration of your bike to a different RTO or state. According to the guidelines outlined in the Motor Vehicle Act, obtaining a NOC is mandatory for inter-state bike transfers or if you want to seek a new registration mark. Learn how to apply for the NOC below.
Steps to Obtaining Online NOC for Bike
You can apply for an online NOC in two ways.
If you have availed a Bike Loan through your bank or an NBFC, the process is quite straightforward.
1. Login to the your net banking or NBFC account.
2. Check for the NOC section and download the NOC.
3.If you are facing any issues, visit the bank branch for assistance.
At TVS Credit we offer a seamless process for obtaining NOC through the TVS Credit Saathi App and the TVS Credit website. Check the link for more: https://www.tvscredit.com/faq/what-is-the-procedure-to-get-noc/
After submitting your request, you will receive a confirmation with a reference number to track your query status.
Application for a NOC is now possible through an online portal ‘Parivahan’ under the Ministry of Road Transport and Highways. However, this is not yet enabled for all states.
Steps for obtaining NOC through RTO
You can apply for NOC directly through the RTO, follow these steps:
- Contact the concerned officials for the CMV 28 form and fill in the required details.
- Make a payment of ₹100, submit the filled form along with the necessary documents.
- The RTO will verify and issue the NOC after confirming no outstanding dues or legal issues regarding your vehicle.
The Two-Wheeler Loan NOC plays a crucial role in securing ownership of your bike post-loan repayment. It signifies the complete clearance of not only does it signify the full clearance of your Bike Loan and ensures a smooth process for transferring ownership, as well as legal compliance. Whether you plan to sell your vehicle or update its ownership details, obtaining a Two-Wheeler Loan NOC is essential for a worry-free, legally sound experience. Choose us, TVS Credit, to breeze through this process today!
FAQs –
- Why is a NOC important for bikes?
It signifies the successful repayment of the Bike Loan and streamlines the procedure of ownership transfer and affirms legal compliance.
- Why is a NOC needed for loan?
Following loan closure, a NOC needs to be submitted to CIBIL to keep credit history up to date. In case you want to apply for any further loans, the CIBIL report should confirm the absence of any outstanding loans.
- What is a NOC certificate for a bike?
The Two-Wheeler NOC certificate for bike is a legal document stating that the issuing agency/bank has no objections to the details on the certificate.
- How long is NOC valid for a bike?
The NOC is valid for 6 months from the date of issue. Hence, it is important to finish the re-registration process at the RTO within this period.
