For many, purchasing a home is a milestone that often requires financial assistance through a home loan. It is crucial to have legal safeguards in place to protect both borrowers and lenders given the persistent cases of fraud in the real estate sector.

One such safeguard is the Notice of Intimation (NOI), an essential document that helps ensure transparency and security in home loan transactions.

In this article, we will explore the Notice of Intimation meaning, its significance, and the charges associated with it.

What Is Notice of Intimation for Home Loans?

An NOI is a crucial document in the home loan registration process. It is filed to notify the relevant authorities that a home loan has been sanctioned for a particular property. The primary objective is to prevent real estate fraud, such as multiple registrations or taking out multiple loans on the same property.

How Does a Notice of Intimation Work?

When applying for a home loan, the lending institution provides an agreement outlining the loan terms and conditions. If the borrower accepts these terms, the agreement is signed and registered. In such cases, there is no requirement for the borrower to file an NOI separately.

However, if the loan agreement is not registered, it becomes the borrower’s responsibility to submit a Notice of Intent to the Sub-Registrar’s office within 30 days of receiving the first loan amount.

Failing to register the loan agreement or file an NOI can put the validity of the loan at risk and may compromise the rights of both the borrower and lender. Borrowers who do not comply with this requirement may be subject to penalties under Section 89C of the Registration Act. To

Apply Now

Importance of Notice of Intimation for Home Loans

Here are some key reasons why an NOI is important in home loan transactions:

• Legal Compliance: Filing an NOI is mandatory if the loan agreement is not registered. It helps in establishing a legal record of the home loan and avoiding penalties under Section 89C.
• Prevention of Fraud: Registering an NOI helps prevent fraudulent property transactions by ensuring that the home loan is officially recorded.
• Clarity and Transparency: The NOI provides a legally documented confirmation of the home loan, ensuring transparency between the lender and borrower. It reduces the likelihood of disputes by clearly establishing the loan agreement in public records.

Procedure for Filing a Notice of Intimation

To file an NOI, a borrower must first pay the stamp duty (which varies from state to state). This can be done through the Government Receipt Accounting System (GRAS). Next, get the NOI form authenticated and sealed by a lender representative, attach a signed passport-sized photo, and submit the original notification letter along with a photocopy to the Sub-Registrar’s office.
After verifying the documents, the Sub-Registrar will issue a receipt and an acknowledgement on the photocopy.

Notice of Intimation Charges for Home Loans

When filing an NOI for a home loan, a standard fee of INR 1,000 is applicable, irrespective of the loan amount. For physical submissions, an additional document handling charge of INR 300 is levied. Payments can be made through the Government Receipt Accounting System (GRAS). For offline submissions, fees can be paid via authorised methods, including GRAS. If paying by cheque, it should be made payable to the Sub-Registrar's office. The document handling fee is to be paid in cash.

Documents Required for Filing a Notice of Intimation

Here are the common documents you’ll require for filing an NOI:

• The loan sanction letter, signed by both the lender and the borrower
• Stamp duty papers or electronic Secure Bank and Treasury Receipt for 0.2% of the loan amount.
• PAN card
• Passport-sized photograph of the borrower
• Two copies of the recent index
• NOI signed by the lender’s representative and self-attested by the borrower
• Photocopies of all the documents

Key Elements of a Notice of Intimation

The specific elements for an NOI can vary by jurisdiction, but generally, it includes:

• Loan Agreement Details: Comprehensive information about the loan, including the sanctioned amount, interest rate, repayment terms, and conditions agreed upon by both the borrower and the lender.
  
• Borrower Information: Name, contact details, and identification information.
  
• Property Details: Legal description and ownership details of the mortgaged property.
  
• Lender Information: Name and branch of the lending institution.
  
• Authentication: Official signatures or stamps from both parties.

Conclusion

The Notice of Intimation (NOI) is a crucial legal safeguard in the home loan process, protecting both lenders and borrowers. By ensuring proper documentation and registration of loan agreements, it promotes transparency and helps prevent fraudulent activities in real estate transactions. Understanding the NOI process – including its charges, requirements, and filing procedure – is essential for anyone seeking a home loan. Compliance not only fulfils legal obligations but also safeguards the interests of all parties involved.
If you’re exploring home loans, SMFG Grihashakti offers financing of up to 90%* of the property’s value with a flexible tenure of up to 30 years. Check out our competitive interest rates, estimate your EMIs, and apply online today!