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Divya (nil)     27 July 2013

Is society noc needed for refinance

Hello Experts


We had taken a home loan some 10 yrs back, now we need to transfer home loan to a 3rd party. 3rd party is asking society NOC & society says they will give NOC only when all dues of the first bank are paid...There is no question to pay the dues by us since the loan has to be transferred to a 3rd part and only the 3rd party will settle all dues of the bank.


Also as per clause 38(d) of Maharashtra Co-operative Soicety Act, - SOCIETY NOC is not needed for transfer of flat/shares..Please assist me...


Why will a society NOC be needed for a loan refinance.

 1 Replies

Apprentice (Associate)     27 July 2013

Hello Divya,

Firstly, I do not profess to be an expert. Ideally your first port of call is your bank. Try to proceed in the transaction as follows:

Firstly, you should  obtain a letter from your bank stating the total loan that is outstanding in your name for the said flat. This will tell the buyer what are your dues (as well as the interest rate on your loan so that the buyer can then estimate your total dues as on a particular date in future). Your bank should also state in the letter that they note that you are selling the flat and that the buyer is going to settle all outstanding dues from you. Your bank should further state that they will not permit any refinancing/further advances against the said property from the date of its letter. This will give the buyer/buyer's lender assurance of your liabilities secured by your property. Take three original copies. Give one to the buyer, one to the Society and one for your own records.


Now  request the Society to issue a letter (not "NOC" - how can Society say it has no objection?) saying what are your dues to the Society (if any) are and also the name(s) of the lender(s) who have an interest (i.e. charge) over your property as per their records. 

So now the buyer has to two letters which he/she can then show their lender. This is all the buyer needs at this stage. 

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