Letter Writing

No Due Certificate From Bank

You must get a no due certificate from bank when you have cleared all your spending. Hence, you have to write an application for it. Moreover, it is a clearance certificate from the bank. For instance, it states that you have no dues left in the bank. Also, this certificate indicates a full and final settlement for you against your bank. Therefore, in today’s article, we will talk about no due certificate from bank. Also, we will see a few samples regarding the same.

no due certificate from bank

How To Write a No Due Certificate from Bank?

A no due certificate from bank is issued to you only after you clear all the pending. Moreover, the bank manager has the right to issue a no due certificate from bank. Hence, you must know how to write an application for the same. This is to request the bank manager for the no due certificate.

Moreover, this application is very similar to other formal letters you write to any higher authority. Therefore, you must write it in a formal tone.

However, if you want a no due certificate from bank, you have to follow the letter format for the bank. For instance, this format includes

  • Date
  • Subject
  • Receiver’s address
  • Salutations
  • Body
  • Bank account detail
  • Closure

Your bank manager will issue the certificate after the confirmation of due clearance. Here are some samples on the “No due certificate from bank.”

Format For No Due Certificate From Bank (Personal loan)

Sample 1 – No due certificate from bank

Yamini Konar

44/B, Vidhyesh Apartment

Arvind Nagar

Nagpur – 4402911

Date – 23/08/2022

The Bank Manager


Shivaji Nagar Branch

Nagpur – 440011

Subject: No due certificate from bank

Respected Sir,

I, Yamini Konar, have had a savings account with the number 3846766255 in your bank since 2015. To sum up, I want to state that I have cleared the pending loan amount of the bank. For instance, I had taken a personal loan of INR 5 Lakh from the bank. Moreover, last month I cleared the last due of the loan.

Hence, I request you to please issue me a no due certificate from the bank. Additionally, I have attached copies of my bank passbook and the loan receipt for your reference.

Hope to hear from you soon.

Thank You

Yours sincerely,


Yamini Konar

Contact number- 1111111111

Explore More Sample Letters

Sample 2 – No Due Certificate from Bank (Study loan)

Tushar Shah

5th Main, Marathahalli

Bangalore – 546628

Date – 22/08/2022

The Bank Manager

State Bank Of India

HAL branch

Bangalore – 498836

Subject: No due certificate from bank

Respected Madam,

I am Tushar Shah, resident of 5th main, Marathahalli. To sum up, I would like to bring you to your notice that I took an educational loan of INR 10 Lakh on 6th August 2018. Moroever, the loan account number is 38846620918. On 5th August 2022, I cleared the last instalment of the loan.

Therefore, I would like to request for a no due certificate for the loan. Also, it would be great if you issue it as soon as possible.

Thank You.

Yours sincerely,


Tushar Shah

Contact number- 1234567890

Advantages Of A No Due Certificate From Bank

A no due certificate from bank is a synonym for peace of mind. The major advantages of this certificate are:

  • Firstly, the certificate clears any confusion about the repayment of loan. Moreover, it makes the future loan borrowing process easy.
  • It mitigates possible legal issues for loan settlement.
  • Submitting it to credit bureau can ensure a good credit score.

Loans That Require A No Due Certificate From Bank

  • Home loan
  • Business loan
  • Car loan
  • Loan against shares
  • Personal loan
  • Loan against property

What If You Misplace The No Due Certificate From Bank?

If you misplace the certificate, log an FIR in your area police station. Then, approach the bank with the FIR copy and loan-related document to ask for a duplicate certificate. However, it may take a bit more time.

Frequently Asked Questions

Q1. What is no due certificate from bank?

Answer. A no due certificate from bank is also known as NOC (No Objection Certificate). Moreover, it is a declaration that you do not have any remaining due on the bank.

Q2. Why no due certificate is important?

Answer. While taking a bank loan, you need a no due certificate from bank. Moreover, it showcases tht you do not have unpaid loan on you. In fact, you must clear your outstanding debt befor applying for a new loan.

Q3. How can I get NOC from bank?

Answer. Once you paid all the loan installments, you can ask for NOC from bank. For instance, the NOC wll declare that you do not have any outstanding due on you.

Q4. How long does it take to get NOC from bank?

Answer. Generally, the bank replies to your request in about 3-4 days. However, sometimes the process may take 7 business days.

Q5. What if NOC expired?

Answer. The document is valid for 6 months. Therefore, you have to use it before that. Moreover, when it is expired, you cannot produce the same. However, you

Q6. Will my CIBIL score improve after settlement?

Answer. Whne your loan is settled, there is a bit decrease in your CIBIL score. For instance, your score will drop by 70 to 100 points. Moreover, it will hold this record for  7 years. Therefore, if you try to take loan during this time, bank will decline the request due to low CIBIL score.

Q7. How can I remove CIBIL report?

Answer. For instance, you cannot remove your CIBIL report. Moreover, it stays on record for 2 years. However, you can spot an enquirty to track any fraud or mistake of bureau.

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