What is no-dues certificate?
Also called: NDC, loan closure certificate, no dues letter, society no dues
Written proof that nothing is owed, whether to a bank on a home loan, to the housing society for maintenance, or to the builder or development authority. Buyers ask for it so they don't inherit the seller's arrears.
The NDC that matters most comes from the bank when a home loan is repaid. It confirms the account is closed and the lender has no claim left on the property. Since 1 December 2023, RBI rules require regulated lenders to return all original property documents and remove any charge filed with a registry within 30 days of full repayment. If they miss that deadline for reasons of their own, they must pay the borrower ₹5,000 for every day of delay. That's worth quoting if your bank goes quiet after the last EMI.
The bank's letter isn't quite the end. Check that the charge the lender filed with CERSAI has been marked satisfied, and in states where the mortgage itself was registered, Tamil Nadu for instance, make sure a registered release or receipt deed follows so the encumbrance certificate shows the loan as closed.
In a resale, the buyer needs the same comfort about other dues. Society maintenance, sinking fund contributions and water charges usually follow the flat, and many bye-laws let the society recover a previous member's arrears from the new one. Property tax arrears attach to the property as well. So ask for a society NDC, the latest tax receipt and recent electricity and water bills, and hold back part of the payment until they're produced.
For an under-construction flat bought from the first allottee, the builder's NDC confirms which instalments have been paid, so you know exactly what you're taking over.
A Chennai borrower closes a ₹35 lakh home loan in January 2026 and receives her documents on day 42. If the delay was the bank's doing, the RBI rule entitles her to ₹5,000 a day for the 12 extra days, ₹60,000 in all.
Accepting a statement that shows a zero balance instead of a proper closure letter. You need the NDC, every original document on the deposit list returned, and the CERSAI charge satisfied before the loan is truly off your title.
Questions people ask about no-dues certificate
How do I get a no-dues certificate after closing my home loan?
Most banks issue it automatically, or on request through net banking or the branch, once the final payment clears. Collect the originals yourself and tick each one off against the list you signed when the loan was taken.
Do I need a society NDC to buy a resale flat?
It isn't required to register the sale, but without it you risk paying the seller's unpaid maintenance. Most lenders ask for it before they disburse a resale loan.