Documentation

NOC stands for a No Objection Certificate to mortgage the property. The NOC certificate covers five main clauses viz., Property being free from any encumbrances, Property being free and marketable, permission to mortgage the property, Acceptance of lien on the property and the owner not being allowed to sell the property to anyone else without the consent of the HFI.

In states like Maharashtra and others, the flat owner and the owner of the land on which the flat stands are not the same. The flat owner is given a property by virtue of his being a member of the society or the land being allotted (and not transferred) by a development authority in his favor or the developer selling a flat built on his land. Hence the NOC is required to safeguard the interest of the HFI from the repercussions of the five clauses viz; Property being free from any encumbrances, Property being free and marketable, permission to mortgage the property, Acceptance of lien on the property and the owner not being allowed to sell the property to anyone else without the consent of the HFI not being adhered to.

NOC is not required if the landowner and the property owner are the same. Hence, if you are constructing a property on a plot of land that you own, NOC will not be required.

Credit documents are required by the HFI to determine your repayment capacity. For a checklist of the documents that you will need to submit to get your loan sanctioned.

Legal documents refer to the documents that pertain to your property. These documents establish the fact that you are the owner of the property. For a detailed list of the documents that you will need to submit for getting the disbursement of your loan, please read legal documentation in the Home Loan content.

You do not require a NOC from the HFI to carry out improvements to your house. Most HFIs offer finance facility for carrying out improvements as well.