A no dues certificate is the bank's written confirmation that nothing is outstanding on a loan, overdraft, card or other facility. You get it by sending your branch a short letter quoting the account or loan number, stating that you have repaid in full, and asking for the certificate. Request it as soon as the final payment clears, not months later when a lender, landlord or tender committee suddenly asks for it.
Key takeaways
- A no dues certificate (sometimes called a no objection or loan closure certificate) proves a facility is fully repaid and closed.
- Common triggers: closing a business loan or overdraft, switching banks, applying for new credit, tenders and vendor registrations.
- The letter needs your account or loan number, the closure date, a request for the certificate and the release of any security.
- When it arrives, check names, account numbers, the nil balance statement and the release of collateral.
- Exporters switching banks should separately ask about open EDPMS entries; a no dues certificate does not cover export realisation.
When you need one
| Situation | Who usually asks | What the certificate proves |
|---|---|---|
| Business loan or term loan repaid | You, for your records; future lenders | The loan is fully repaid and closed |
| Cash credit or overdraft closed | New bank, auditors | No outstanding balance or liability |
| Moving your banking to another bank | New bank, internally for your file | Clean exit from the old bank |
| Tender or vendor registration | Government or corporate buyer | No defaults with your bankers |
| Property or vehicle loan closed | Registrar or transport office, buyers | Lender has no further claim |
| Credit card closed | You, for credit records | No dues on the card |
Banks may use different names for the document. What matters is that it is on the bank's letterhead, signed by an authorised official, and states the facility is closed with nothing due.
The format
Keep it short and specific. A business writes on letterhead, signed by an authorised signatory.
| Element | What to include |
|---|---|
| Subject | Request for No Dues Certificate – Loan/Account No. XXXXXXXX |
| Borrower details | Name exactly as on the loan, customer ID |
| Facility details | Type of facility, account number, sanction date |
| Closure details | Date of final payment, mode, reference number |
| Request | Issue a no dues certificate; release security documents |
| Enclosures | Payment proof, final statement if you have it |
| Signature | Authorised signatory for a business; borrower for an individual |
Sample letter
To, The Branch Manager, [Bank name], [Branch address]
Subject: Request for No Dues Certificate – Term Loan Account No. [XXXXXXXX]
Dear Sir/Madam,
We, [Business name], had availed a term loan under the above account, sanctioned on [date]. We have repaid the loan in full, with the final instalment of ₹[amount] paid on [date] by [mode and reference].
We request you to issue a No Dues Certificate confirming that no amount is outstanding under this facility, and to return all original documents and release any security held against it.
Kindly also confirm whether any other facility under our customer ID has an outstanding balance.
Yours faithfully, [Name], [Designation], Authorised Signatory
Enclosures: Proof of final payment; loan account statement
The free no dues certificate request letter generates this in your business's details. Pair it with the letterhead maker if you need a clean header.
What to check on the certificate
A no dues certificate with a wrong account number is almost worthless when you need it most. Check it on the day it arrives.
- Names exactly match the borrower and any co-borrowers or guarantors.
- Account or loan number is correct and complete.
- Facility type is described correctly (term loan, cash credit, overdraft).
- Closure date matches your final payment.
- Nil outstanding is stated clearly, not implied.
- Security release is mentioned: return of original title documents, cancellation of hypothecation, release of fixed deposits held as margin.
- Signature and seal of an authorised bank official.
If the loan was secured and the bank had registered a charge, for example with the Registrar of Companies for a company borrower, the certificate alone may not clear the public record. Ask your company secretary or CA what further filing is needed to record satisfaction of the charge.
A worked example
Saanvi Interiors & Design LLP in Jaipur took a ₹18,00,000 term loan in 2023 to fit out its studio, with a fixed deposit of ₹3,00,000 held as margin. It paid the last instalment of ₹42,600 on 5 November 2026.
On 8 November, the designated partner, Pooja, sent the bank a request letter with the payment receipt. The bank issued a no dues certificate on 21 November stating the loan was closed with nil outstanding, and released the lien on the fixed deposit. Pooja checked the LLP's name, loan number and closure date, then filed the certificate with the loan agreement.
Three months later, when Saanvi applied for an overdraft at another bank to fund a large project for a client in Dubai, the new bank asked for proof of past borrowing. The certificate was ready.
A note for exporters switching banks
Many service exporters move banks for better forex rates or service. If you are moving your foreign receipts to a new AD bank, a no dues certificate from the old bank covers loans and facilities, not export compliance. Separately, ask the old bank:
- Whether any EDPMS entries against your EDFs remain open, and what it needs to close them.
- Whether it holds any FIRAs or remittance advices you have not collected.
- How it will treat any foreign payment that arrives after you close the account.
If you are closing the account altogether, use a proper account closure letter. Our guide on closing savings and current accounts lists the steps.
This is general information, not legal advice.
Frequently asked questions
What is a no dues certificate from a bank?
It is a letter from the bank confirming that a loan, overdraft, card or other facility has been fully repaid and nothing is outstanding. Banks may call it a no dues, no objection or loan closure certificate.
How do I request a no dues certificate?
Write to your branch quoting the account or loan number, the date and reference of the final payment, and ask for the certificate and release of any security. Attach proof of payment. Businesses should sign through an authorised signatory.
How long does it take to get a no dues certificate?
We do not have verified turnaround times, and they vary by bank and facility. Ask your branch when you submit, and follow up in writing if it takes longer than they indicated.
Does a no dues certificate close my EDPMS entries?
No. EDPMS entries relate to export declarations and realisation. They close when the bank matches realisation, through your declaration for invoices up to ₹10 lakh or payment evidence for larger ones. Ask your AD bank separately.
What if the certificate has an error?
Return it promptly with a short letter pointing out the error and asking for a corrected certificate. An incorrect name or account number can make the certificate useless later.
Bottom line
Ask for a no dues certificate the week your final payment clears, check every detail, and file it with the loan papers. Exporters changing banks should also tidy up open EDPMS entries and uncollected FIRAs before leaving. The free no dues certificate request letter takes two minutes to fill in.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.