What is the Full Form of NEC in Banking?

Thе Full Form of NEC in Banking is Non-Encumbrance Certificate. NEC is an official document proving that no legal or financial claim exists over a property. It confirms any existing mortgage or any unpaid loans against the property. This certificate indicates that there are no liens on the property, and it lies with the property owner. It is thus a very integral part of any real estate transaction or in obtaining bank loans. NEC is very vital for any person wanting to buy real estate or offer it as security when one wants to acquire a loan. Most importantly, it ensures that no other claims or liabilities are attached to the property.

How to Obtain an NEC?

You shall be issued with a Non-Encumbrance Certificate upon application by the Sub-office Registrar, provided that you apply at the one who has jurisdiction over your property. You are required to fill out Form 22 with details concerning the property and the intention of the certificate. Attach identification and proof of address and state the desired validity period, usually a fiscal year. You will be given the same certificate within 20-30 working days, provided you pay the necessary amount. Form 15 shall be given to you in case there are encumbrances; otherwise, Form 16 is given.

States Offering NEC Services

Seven states in India—Andhra Pradesh, Telangana, Tamil Nadu, Kerala, Karnataka, Gujarat, Orissa, and Pondicherry—are offering their residents computerized or online NECs. This essentially means applicants living within the aforementioned states are able to apply for their digital certificates, fast-tracking the entire process. In some cases, a handwritten one shall be required, followed by an in-person visit in search of an NEC. Also, to make things easier and faster, first, make sure that NEC services are offered online in your state before going for any real estate transaction or loan application.