What is Notice of Intimation (NOI) in Home Loans And Its Charges?

When you take up a loan in India, you must file several official documents and agreements. The most basic yet critical ones include your identity proof cards like PAN and Aadhaar and your income statements. Then, depending on what kind of loan you opt for and under what lending conditions, you must submit documents related to ITR, property, collateral, etc. For a home loan, along with the basic registration and application documents, you also have to submit a document called the NOI.

That’s why it is essential that you know what an NOI is, the NOI charges for a home loan, and the procedure to file one without default under Section 89B of the Registration Act, 1908.

What is NOI In Home Loans?

The NOI full form in home loans is Notice Of Intimation. This is a registration document which acts as a legal, written notification to property authorities that a home loan has been sanctioned. It informs the registrar about a home loan disbursal. This document safeguards the financial rights and interests of the parties involved, i.e., the society, the bank, and the applicant.

How Does NOI Work?

The notice of intimation for home loans has a clear-cut function - to decrease financial fraud in the housing sector. Keeping in mind that an NOI is a declaration of a home loan being sanctioned for the property in question, let us consider an example to better understand the working of an NOI.

Suppose that there is a bungalow being sold at INR 2 crore. As someone interested in purchasing it, Mr. X takes up a home loan of INR 1.5 crore. In the absence of an NOI, there is no document to prove that there already has been a loan taken up for the property in context. This means that Mr. X can take up different funds from multiple different sources and lending institutions for the same property. This can lead to financial fraud in the upcoming times.

That’s why the notice of intimation new rules since 2013 dictate that an NOI is a vital part of the home registration process.

Working of NOI

• When you apply for a home loan, the non-banking financial company that you approach will draw up a written agreement with you declaring the transfer of funds.
• Once you apply for a home loan, a document is officially signed by the two parties involved, often the financing institution. After this document is registered, and both parties have agreed to the Terms & Conditions, there is no need for an NOI.
• In case there is no such written contract registered, then the home loan applicant must submit a notice of intimation for home loans to the sub-registrar’s office (according to geographical jurisdiction) within a time span of 30 days.
• The NOI falls completely under the responsibility of the applicant.
• In case the NOI is not filed, a notice of intimation penalty can be charged.

Procedure For Filing An NOI

• Pay the necessary stamp duty fees That is, 0.1% if the loan amount is less than Rs 500000/-, and 0.2% if it is greater than Rs 500000/-.
• Attach a passport-size photograph of the applicant along with the mortgagor’s signature.
• Take the official signature and seal of an employee of the lending institution in question.
• Send a photocopy and original document of this application to the sub-registrar’s office.
• Receive the receipt for filing this and the stamp duty fees.

NOI Charges For Home Loan

The NOI charges for a home loan are INR 1000 when the filing is done online. When done offline, an additional fee of INR 300 must be paid as document handling charges. To learn more about notice of intimation charges, you can check out the official government website of GRAS (Government Receipt Accounting System).

Documents Required For NOI Filing

You will require the following documents:

• Stamp duty papers or electronic Secure Bank and Treasury Receipt for 0.2% of the loan amount.
• Passport-sized photograph of the applicant.
• Document declaring the approved and sanctioned loan amount.
• PAN card.
• Index II property document.
• Letter of intimation of mortgage with all necessary fees.
• Documents as deposited for loan.
• Original letter from the lending institution, duly signed or sealed.

NOTE: All the above documents must be photocopied, and both the original and copy must be signed by authorities from the lending institution.

Conclusion

To go through the loan approval and sanctioning process in a trouble-free manner, it is essential that you take care to submit all required documents, legal and financial, within the stipulated timeframe. The requirement of a notice of intimation for home loans is not new, but since its rules changed in 2013, many lending institutions have become stricter in their collection.

With SMFG Grihashakti, you can opt for a home loan of up to even INR 5 crore* for a long tenure of up to 30 years. You can comfortably repay your loan amount through its easy EMI system, the calculations of which you can check through our online home loan EMI calculator. If you fall into our eligibility criteria, apply for a loan to build your dream house today!