Understanding Notice of Intimation (NOI) for Home Loans in India
1 January, 2025
Synopsis
NOI for Home Loans prevents property fraud by notifying loan approval against properties.
Required documents include stamp duty papers, applicant's photograph, loan approval declaration, PAN card and lender's letter.
The filing process involves bank verification and the Sub Registrar's submission, ensuring regulatory compliance for loan registration.
The Government of India introduced the Notice of Intimation (NOI) for Home Loan, on April 1, 2013, with the goal of lowering the number of property fraud cases. It is a document that informs the authorities that a Home Loan has been approved against the designated property.
A crucial step in the Home Loan registration procedure is obtaining the NOI for the Home Loan. Potential buyers of real estate shouldn't overlook this stage. This article will take you through what is Notice of Intimation in Home Loans.
What Is NOI in Home Loans?
NOI is an important document that notifies lenders and borrowers that a Home Loan has been approved against the property. If your Home Loan agreement is not registered, you must obtain this letter. The Home Loan Intimation Notice serves as fraud protection for lenders.
How Does NOI Work?
The bank will provide an agreement when you apply for a Home Loan. The agreement is registered as soon as both parties sign it; a Notice of Intimation (NOI) is not required. However, if the agreement is not registered within 30 days of receiving the first loan amount, the borrower must submit a notice of intent (NOI) to the Sub-Registrar Office. The borrower alone is responsible for this.
The validity of the loan and the interests of the parties involved may be jeopardised if the agreement is not registered and the NOI is not filed. Penalties outlined in section 89C of the Act apply to those who do not provide the notice within the specified time frame.
The purpose of the Notice of Intimation for Home Loans is very clear: it is to reduce financial fraud in the real estate industry.
How to File the Home Loan Intimation Notice?
The first step in filing for a Home Loan Intimation Notice is to pay the stamp duty, which is payable through the Government Receipt Accounting System (GRAS) and varies by state. After that, have the NOI form authenticated and sealed by a bank representative, attach a signed passport-sized photo, and send the original notification letter and a copy to the Sub Registrar's office.
After reviewing the documentation, the Sub Registrar will provide an acceptance receipt on the photocopy. To safeguard both your interests and those of your lender, make sure you apply for the Home Loan Intimation Notice or register your loan agreement.
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-size 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.
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*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
