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Navigating the home loan process can be complex, filled with numerous documents and communications. One such critical document is the Notice of Intimation. Understanding this notice is essential for ensuring a smooth journey toward securing your dream home.
In this guide, we will explore what a notice of intimation entails, its importance in the home loan process, and how you should respond upon receiving it.
What is a Notice of Intimation?
A Notice of Intimation (NoI) serves as an official document required in the home loan registration process in India. Additionally, Section 89B of the Registration Act, 1908, mandates it. Its primary purpose is to protect the lending institution’s interests by informing the registrar that a home loan has been sanctioned and funded for a specific property.
Introduced on April 1, 2013, the NoI helps prevent fraudulent activities, such as the multiple registrations of the same property for different loans. Responsibility for submitting the Notice of Intimation rests with the borrower, who can choose to file it personally or engage a third-party service provider to handle the submission.
How Does a Notice of Intimation Work?
Agreement Registration:
- Registered Agreement: If the lending institution shares an agreement document with you at the time of application submission and both parties agree to it, the agreement will be registered. In this case, filing an NOI is not required.
- Unregistered Agreement: If the agreement is not registered, the borrower must submit an NOI to the respective Sub-Registrar’s Office (SRO).
Filing the NOI:
- Timeline: The borrower has a 30-day window from the first loan disbursement to file the NOI at the SRO.
- Responsibility: Filing the NOI is the borrower’s responsibility, not the lending institution’s.
Consequences of Not Filing NOI:
- Legal Risks: Failure to file the NOI can jeopardize the legality of the mortgage, potentially harming the interests of both parties involved.
- Penalties: Under Section 89C of the Registration Act, 1908, the borrower may face penalties if the NOI is not filed within the stipulated 30-day period.
Notice of Intimation Charges
| Charge Type | Amount | Applicability | Payment Method | Additional Details |
|---|---|---|---|---|
| NOI Filing Charge | ₹1,000 | Required for all NOI filings | – | Non-refundable; must be paid within 15 days |
| Document Handling | ₹300 | Applicable for physical filings | – | Non-refundable; must be paid within 15 days |
| E-Filing Handling | ₹300 | Applicable for e-filing via GRAS | Through Government Receipt Accounting System (GRAS) | Non-refundable; must be paid within 15 days |
| Additional Notes | – | Applicable even if the loan is not sanctioned | – | Fees must be paid in a lump sum |
Documents Required
| Document | Details |
|---|---|
| Loan Amount Proof | – Photocopy of 0.2% Loan Amount eSTBR, stamped papers, or Deposited Memorandum with bank officials’ signatures. |
| PAN Card | – Photocopy of the borrower’s PAN card. |
| Passport-Sized Photographs | – Passport-sized photos of all borrowers associated with the property and home loan. |
| Recent Index | – Two copies of the most recent property index. |
| Notice of Intimation (NOI) | – NOI with a title deed of ₹100. – Signed and stamped by a relevant bank official. |
| Original Bank Letter | – Original letter from the bank indicating loan and mortgage details, including routing information. |
| Document Copies | – Photocopies of all submitted documents. – A list of all documents included in the NOI filing. |
How to File a Notice of Intimation (NOI) ?
1. Pay Stamp Duty via GRAS:
Make the stamp duty payment using the Government Receipt Accounting System (GRAS).
2. Attach Passport-Sized Photos:
Include passport-sized photographs of your signature with the application.
3. Obtain Authorization:
Have an authorized official from your financial institution sign and authenticate the application.
4. Submit Application:
Send the original application along with a photocopy of the notification to the Sub-Registrar’s office.
5. Review and Receive Receipt:
After the Sub Registrar reviews all documents, you will receive a receipt for the filing fee and document handling charges.
Conclusion
A Notice of Intimation is a crucial document in the home loan process, signaling important updates regarding your application. By understanding its components and responding appropriately, you can therefore navigate the complexities of securing a home loan with greater confidence and efficiency.
Ready to take the next step in your home loan journey? Contact Credit Dharma today for expert guidance and personalized support to secure the best home loan tailored to your needs. Furthermore, Let us help you achieve your homeownership goals with ease and confidence.
Frequently Asked Questions
Review the reasons for rejection, address any issues, and consider reapplying or seeking loans from other lenders.
The timeline varies by lender but typically occurs within a few weeks after application submission.
Yes, you can appeal by providing additional information or addressing the reasons for rejection, depending on the lender’s policies.
It is an official communication outlining the lender’s decision but not a legally binding contract until you sign the loan agreement.
It usually includes the loan status, required documents, next steps, contact information, and relevant timelines.
Provide the requested documents promptly and ensure they are accurate and complete to avoid further delays.
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