Why Should You File Notice of Intimation for Home Loans?

Buying a home is a dream of millions in India. In 2022, residential property sales grew by 56% across the country. 60-80% of the approved home loans emerged from Tier-2 and Tier-3 cities.

While the statistics look good for borrowers and lenders, it is crucial to acknowledge that the real estate sector faces significant challenges posed by various property frauds. The same house may be registered/mortgaged multiple times, causing losses for the home buyers, lenders, and society.

Thus, to protect the interests of all the parties involved, the government introduced the notice of intimation (NOI) for home loans. Read ahead for more details.

Notice Of Intimation Meaning

NOI is an integral part of the home loan registration process. It is a legal document that notifies the registrar and concerned authorities about a home loan disbursal. It came into force on 1^st April 2013 to reduce property scams.

How Does Notice of Intimation Work?

Suppose you apply for a house loan with IIFL Home Loans. Your lending institution will chalk out an agreement outlining the mortgage/loan terms. If you and your lender sign the agreement and register the same, you need not file an NOI.

If the agreement is unregistered, it is mandatory to submit a Notice of Intimation (NOI) within 30 days of obtaining the loan. You should submit the NOI at the sub-registrar office under whose jurisdiction your property is situated.

You can also file it online via the corresponding e-registration portal. For example, if you bought a home in Nagpur, submit your NOI through the Inspector General of Registration (IGR) Maharashtra.

What Are Notice Of Intimation Charges In Home Loans?

The NOI charges for home loans include the costs of filing and document handling. You must incur a flat filing fee of ₹1,000, regardless of your loan amount. If you are filing the NOI physically, you must pay a document handling fee. Check your IGR website for the latest NOI charges.

How To File NOI?

Below is a step-by-step guide to filing your notice of intimation:

1. Register on the IGR portal and set up your user ID and password. This step is not applicable if:

   • You file the NOI physically.

   • You already registered on the portal.

2. Complete the form online/offline. Enter your details, including loan, property, and lender information.

3. Pay the required stamp duty and notice of intimation charges.

4. Affix/upload your passport-sized photo and signature/thumb impression.

5. An authorised officer from your lending institution verifies and signs your application. The officer also affixes the institution's seal. If you have completed the application online, print out the NOI. Get it validated and signed by the officer physically.

6. Send the original notification and a photocopy to the sub-registrar office. Or upload the verified NOI via the IGR website.

7. The sub-registrar checks and acknowledges the documents, provided everything is correct.

How Does The NOI Benefit You?

The NOI protects your lender against fraudulent practices like obtaining multiple loans for the same house. It ensures your mortgaged property is not illegally sold by anyone without your lender's knowledge. Thus, it safeguards your and your lender's interests.

IIFL Home Loans (IIFLHL) provides housing loans starting from ₹2,00,000. If you are a salaried/self-employed resident Indian between 18-75 years of age, apply for an IIFL home loan now! And get your loan approved within 30 minutes!

FAQs

1. Is the stamp duty fee the same for all?

The stamp duty payable depends on age, gender, and property location. It is higher in urban areas. If you are a senior citizen or a woman, you get waivers/discounts.

2. How can you pay the stamp duty and notice of intimation charges for home loans?

Online payments get routed through your state's Government Receipt Accounting System. If you are physically filing the NOI, you can pay the charges by cheque or any authorised payment method.

3. What happens if you do not file an NOI?

Non-filing of the NOI within the given time frame attracts penalties under section 89C of the Registration Act.

4. Does the lender submit an NOI?

Only borrowers file the NOI and incur the corresponding charges.

5. What documents do you require for NOI filing?

You need the following documents duly signed and stamped by your lending authorities:

• Passport-sized photographs and Permanent Account Number(PAN) of all borrowers

• Loan sanction letter

• Photocopy of stamp paper/franked paperwork

• Index II certificate

• Notice of Intimation confirming the borrower has deposited the title deed with the lender

• Original letter from the lender containing routing details