NBFC not willing to issue NOC in loan settlement offer

Dear Client,
A No Dues Certificate(NDC) post-settlement of the loan is proof of clearing all your outstanding payment dues with the lender. It ensures that the bank or the NBFC does not ask you to cover any outstanding dues later. This proof also helps you to procure loans and EMIs in the future. Borrowers must obtain a No Dues Certificate (NDC) after settling their debt/dues against a loan, which serves as proof of their cleared dues and can be beneficial for future loan applications and maintaining a good credit score. Even to remove a "Settled" status from your CIBIL report after a settlement of a loan, a No Dues Certificate(NDC) from the Bank/NBFC is essentially required for submission to CIBIL for updating your status. Here, the concerned NBFC plays a double standard policy, while they agreed to a settlement on payment of 60% of the dues, they refused to issue the NDC post settlement of dues. In the given scenario, you can escalate your grievance before the regulatory authority, the RBI, online on its grievance redressal portal under the Integrated Banking Ombudsman Scheme at https://cms.rbi.org.in for a quick resolution to the matter.

Dear Client,

If the NBFC is offering a 60% settlement on your unsecured personal loan but clearly states that a No Dues Certificate (NDC) will not be issued unless the full outstanding amount is paid, you should proceed with caution. Settling the loan without an NDC means the account will be marked as "settled" rather than "closed" in your credit report, which can negatively impact your credit score and future loan eligibility. While NBFCs typically do not pursue further legal action once a formal settlement is accepted and paid, the absence of an NDC leaves room for potential future disputes or recovery attempts. If you choose to settle, ensure you get the settlement offer in writing, including a clear statement that no further dues will be claimed after payment, and retain all documentation and payment proof. However, if maintaining a good credit score or obtaining a clean closure status is important to you, it may be better to negotiate for a revised offer that includes an NDC or consider repaying the full amount.

Dear Client,
A No Dues Certificate(NDC) post-settlement of the loan is proof of clearing all your outstanding payment dues with the lender. It ensures that the bank or the NBFC does not ask you to cover any outstanding dues later. This proof also helps you to procure loans and EMIs in the future. Borrowers must obtain a No Objection Certificate (NOC) after settling their debt/dues against a loan, which serves as proof of their cleared dues and can be beneficial for future loan applications and maintaining a good credit score. Even to remove a "Settled" status from your CIBIL report after a credit card settlement, a No Dues Certificate from the Bank/NBFC is essentially required for submission to CIBIL for updating your status. Here, the concerned NBFC plays a double standard policy, while they agreed to a settlement on payment of 60% of the dues, they refused to issue the NDC post settlement of dues. In the given scenario, you can escalate your grievance before the regulatory authority, the RBI, online on its grievance redressal portal under the Integrated Banking Ombudsman Scheme at https://cms.rbi.org.in for a quick resolution to the matter.