Bank needs no objection certificate from second Applicsnt also to hand over documents 

Since there are 2 applicants for home loan bank wills insist on second applicant signature also to hand over original documents 

Even though the second applicant is a formal applicant for the loan, since he too has signed as co-applicant, the bank would insist on NOC from Be also to return the title documents on discharge of loan.

Whether or not the property registered on the primary applicant's name alone, since he has dragged B as a co-applicant hence whether he contributed to the loan or not it is mandatory that he has to either jointly sign the papers or express NOC.

1. NOC Requirement:

   • 
     HDFC Bank does not require an NOC from the secondary applicant (Be) because:

     • The property is registered solely in the name of the primary applicant (Na).
     • The loan has been fully repaid by Na without any contribution from Be.

2. Loan Closure:

   • The NOC for loan repayment will be issued to Na as the sole borrower responsible for the property and repayment.

3. Ownership:

   • Since Na is the sole registered owner, Be has no claim or role in the property after loan repayment.

4. Next Steps for Na:

   • Collect the NOC and original documents from HDFC Bank.
   • Update property records to reflect that the loan is fully cleared.

For detailed, personalized advice, consider a phone consultancy.
Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be really grateful and very happy to read it.

Thank you.
Shubham Goyal

- If the property is registered only in the name of primary applicant , then the consent of the second applicant is not needed. 

- Further , the bank cannot refuse to release the original documents to its legal owner. 

Dear Client,

In the Present Scenario, a loan of 4 crores was taken with two applicants Na, and Be, on September 2020. Na was the primary applicant and the single registered owner has contributed to the loan fully. On November 2024, the Primary applicant Na had paid the loan in full and, Be the secondary applicant, did not contribute at all. Your query is whether a NOC is required from Be. Herein, generally, HDFC Bank does not require a NOC, from the secondary applicant, for closing the loan, as Na, the primary applicant and sole registered owner of the property, has fully repaid the ₹4 crore loan. However, under the Indian Contract Act, since both are applicants, both are jointly and severally liable for the loan. But, once the loan is repaid, Be's liability ceases. Further, the status of co-applicant in the loan does not grant ownership rights to the property, that remains solely with Na, also as reflected in the registration documents. Therefore, since Be has neither contributed to the loan repayment, not does he/she holds any legal rights over the property, HDFC Bank should release the property documents and issue a Loan Closure Certificate based solely on Na’s request and proof of repayment.

Hope you find this answer beneficial for resolving the dispute.

No need of NOC from co-applicant mandatory