The No Due Certificate

The No Due Certificate or what I like to call the I Always Forget that Certificate the reason behind this is clear this is a CERTIFICATE that has a very low importance in my Subconscious Mind. So I recall this as Non-Necessary, but the truth is that this CERTIFICATE is indeed very much necessary, and if not taken in time this could screw up your life and how your Financial System works in the Future.

The No Due Certificate is usually given when you have taken some sort of loan from either a Bank or any other NBFCs and usually, it is given as soon as you have paid all your dues as that signifies that you have paid off all loans. But there are indeed some places where they knowingly delay the No Due Certificate and in some cases avoid even talking about it. The problem lies in the fact that if you can't present a No Due Certificate the Bank or the NBFC may not close your loan at all and you may have some little chunk of balance left forever which you wouldn't even know about.

But you may say what is the harm in having a small chunk of loan in your name, the harm lies in the Credit Score of the user as if he/she doesn't pay their Installments in time then their Credit Score will tank like they have never seen before which means the next time they go to take a loan either they won't get it or they will get some steep interest rates. So yeah it's a given that you should always ask for a NO DUE CERTIFICATE when you have paid off your Loans as if not done that could harm your Future Financial Prospects.