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I am an Indian currently residing in Germany. I would like to invite my little sister to visit me in Germany for about 9 days.

I have obtained a formal obligation letter from here and other necessary documents (health insurance, flight tickets etc.) for Schengen visa application. I will be sponsoring her trip including all expenses.

Since my sister is unemployed, she does not have any income or proof of occupation. In this case, are any additional documents or is a NOC required? What kind of documents will be a sufficient proof of financial status in this case?

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Since you're paying for everything (and let's assume your economy checks out; you'll need to provide your own bank statements, etc), the main remaining thing she needs to demonstrate is that she has a good reason to go back home after the visit, rather than stay in Schengenland and look for a job there.

There is no hard requirement for how one can demonstrate that, except that it needs to convince the consular officer wro processes the visa application.

If she's unemployed and has no particular obligations that demands her return (such as ongoing studies), then it's quite possible that she in fact doesn't have the necessary ties to her home country, in which case there's nothing you can do to document them. A Verpflichtungserklärung might conceivably help a borderline application to fall on the "yes" side of the line now an then, but it won't make up for a complete absence of documentable ties to her home country.

A "NOC" is, as far as I understand, a generic Indian English euphemism for a permit (from somebody to do something), and that seems to be wholly irrelevant here. She doesn't need anyone's permission to go; she needs to have a reason to come back.

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    Thank you for your answer. I produced all the documents I could for the application and the visa was given for the duration of the trip – Nikhil Talreja Jun 16 '16 at 12:59
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    @NikhilTalreja: Cool. Congratulations to you and the sister! – Henning Makholm Jun 16 '16 at 13:07

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