Car Loan Closure Procedure at All Banks
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Team CARS24
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Car Loan Closure Procedure at All Banks

Team CARS24
editor

In present times, most new car buyers take the finance route while purchasing a new vehicle. This is simply because buying a new car needs a pretty big investment and opting for finance doesn’t disturb the liquidity that the buyer enjoys. Also, it’s now far easier to get a car loan than what it was a few years ago. Moreover, most banks now offer low EMIs and easily finance offers. However, as easy it is to get a car loan, it’s pretty difficult to go through the entire car loan closure procedure. Fortunately, the basic steps to close a loan at all banks is almost the same. Our guide below will take you through the steps involved with it, along with telling you how to get a car loan NOC from your bank.

How to get Bank Loan Foreclosure Certificate (LFC) & Loan Closure Certificate (LC) Offline?

If you have opted for a car loan but wish to pay back the borrowed amount before the tenure, you’ll need to get a Loan Foreclosure Certificate (LFC) from the bank. Also, if a customer has already returned the borrowed amount as per the specified tenure and the applicable interest, he or she will be required to get the Loan Closure Certificate. The following steps are required to be followed to close a car loan at any bank and obtain the LFC or LC-

  • Visit your car loan branch of the bank that deals with auto loans with the original and self-attested copies of the below documents-

  1. PAN Card
  2. Aadhaar or Voter Card or other address proof
  3. Car Registration Certificate (RC)
  4. An authorisation letter from Owner and Self-attested ID proof of applicant in case of 3rd party

  • Fill the ‘Request Form’ provided from the bank to apply for LFC or LC
  • Submit a copy of the aforementioned document and the request form to the concerned bank official
  • Once the verification of the application and documents has been processed, the bank representative will tell you the exact foreclosure amount
  • If you wish to pay the pending loan amount through NEFT, IMPS or RTGS, you would be required to obtain the “Beneficiary Account Number” and the bank IFSC Code
  • If you plan to foreclose the car loan through a Demand Draft (DD), kindly get in touch with your respective loan branch.

How to foreclose the Car Loan at a bank offline?

If you have been thinking about how to foreclose the car loan at a bank, you need to follow the instructions given below-

  • Pay a visit to your car loan branch that deals in auto loans. This branch can be located anywhere in the entire country. At the branch, you will be required to submit the following documents-
    • PAN Card
    • Aadhaar or Voter Card or other address proof
    • Car Registration Certificate (RC)
    • An authorisation letter from Owner and Self-attested ID proof of applicant in case of 3rd party
  • Fill a “Request Form” that will be given to you in the bank
  • Submit a copy of the aforementioned documents and the filled request form with the bank representative
  • After the verification of the documents is completed by the bank, you will be told the pending loan foreclosure amount and will be asked about the preferred mode of loan payment
  • If you wish to pay by DD or a cheque, you’ll need to provide the DD/Cheque/Cash along with a self-attested copy of the PAN Card, RC and Aadhaar or Voter ID or any other address proof to the bank officer.
  • In the case of NEFT/RTGS/IMPS mode of payment, the bank will share the Account details (Beneficiary account no. & IFSC code)
  • After you have made the payment online, you will need to give the UTR no. to the bank representatives and the bank will share a payment acknowledgement slip.

How to get Original NOC?

  • Once you have paid back your car loan, the bank will provide you with a NOC that will be sent to your registered address.
  • However, if the original NOC is not delivered to you within stipulated time as communicated by your respective car loan branch, you can call the bank’s customer care number to enquire about the same.
  • On calling the customer care, keep the payment acknowledgement slip handy.

How to get Duplicate NOC Offline?

In case the original NOC is lost or damaged, you can apply for a duplicate NOC by visiting any car branch of the bank that deals in car loans. Carry the documents mentioned below and once at the branch, you will need to follow the below steps-

  • Fill the required “Request Form” for Duplicate NOC that will be provided by the bank
  • The following documents will be required to be produced in original and in a self-attested copy
    • PAN Card
    • Aadhaar Card or Voter Card or other address proof
    • Car Registration Certificate (RC)
    • Authorisation letter & 3rd Person self-attested ID proof in case of 3rd party
  • After the verification of the above documents, the bank will verify the loan closure status
  • Next, you’ll have to pay a fee for the duplicate copy of NOC. This fee varies from one bank to another
  • After the payment is made, a duplicate NOC along with a payment receipt will be provided.
  • In case a 3rd party approaches the bank on your behalf, an authorization letter along with the 3rd party ID proof will be required to be provided to the bank

Also read – Car Loan Closure Procedure at ICICI Bank

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