Satisfaction of Charge: CHG-4 and Loan Closure MCA Checklist
Loan repayment does not automatically clean the MCA charge record. Once secured debt is satisfied, finance and secretarial teams should close the charge record with proper lender evidence and filing trail.
Why satisfaction matters
The Companies Act contains a separate provision for a company to report satisfaction of charge. This makes loan closure a legal-record cleanup item, not just an accounting entry.
For the connected rule or filing step, see Loan Settlement vs Loan Closure: The Credit-Report Difference That Matters.
Loan closure pack
| Evidence | Control |
|---|---|
| Lender no-dues / NOC | Confirms debt/security satisfaction. |
| Repayment proof | Bank trail for final repayment. |
| Original charge details | CHG-1/SRN/certificate to identify charge. |
| Board/internal approval note | Authorises filing and record update. |
| CHG-4 acknowledgement | Final evidence of reported satisfaction. |
Common mistakes
- Closing loan ledger but not MCA charge.
- Not collecting lender NOC promptly.
- Wrong charge ID/SRN in working file.
- Missing modification vs satisfaction distinction.
- No charge register reconciliation at year-end.
Finin2min warning
Official sources used
This article is intentionally source-limited to official MCA / India Code material. Verify final filing positions with the latest Act, Rules, MCA forms and portal advisories before publishing.
- India Code: Section 82 — Company to Report Satisfaction of Charge
- India Code: Section 77 — Duty to Register Charges
- India Code: Companies Act, 2013 official PDF
FAQs
No. Satisfaction of charge should be reported through the applicable Companies Act/MCA process.
Lender NOC/no-dues, repayment proof, original charge details and filing acknowledgement should be kept.
It can create diligence concerns for future loans, investments and transactions.
Source and review trail
Use the current official instrument, portal or regulator publication before acting. This panel separates the category authority from page-specific references.
- Primary category
- Companies Act & MCA
- Official starting point
- www.mca.gov.in