Notice of Intimation

Notice of Intimation (NOI) is a part of the home loan registration process. It is normally submitted to inform the registrar’s office regarding the disbursement of a home loan. It came into effect on 1st April 2013 to curb the fraudulent activities related to the properties, such as multiple registrations of a home or applying for multiple loans against a single home.

Here are some things about an NOI that you should know about:

• The NOI is not applicable if the lender and borrower, both agree to the terms and conditions and get the loan agreement registered

• If the loan agreement is not registered, then an NOI must be submitted to the sub-registrar’s office under whose jurisdiction the particular property falls. This must be done within 30 days after the first EMI is paid

• It is the borrower’s responsibility to submit the NOI

• The borrower is allowed to take the help of a third-party to initiate the process

• In case the borrower does not submit the document, legal action can be taken against them as per Section 89C of the Registration Act, 1908

• If a penal action is initiated, you may be required to pay a penalty or face imprisonment of up to 3 years

E-filing simply refers to filing done through an online method. This system came into effect on 1st April 2013, and the home loan borrowers can now file a Notice of Intimation via online method.  It has been specified in Section 89B of the Registration Act of 1908 and is done through the deposit of title deeds in case of the mortgage. There is a solid reason behind the introduction of the Notice of Intimation for a home loan. 

Earlier, some lending and borrowing parties practised fraudulent activities related to purchasing and selling a home. Some properties showed multiple registrations, which caused losses to the borrowers. 

On the other side, there was evidence of multiple home loans from different financial institutions against a single home which harmed the lending institutions. To bring an end to these harms and losses, the filing of NOI was introduced. 

As mentioned above, the time limit for e-filing of a Notice of Intimation for a home loan is 30 days from the disbursement of the first loan amount. If a borrower fails to file the Notice of Intimation, then the borrower is liable for punishments as mentioned in Section 89C of the Registration Act.

Follow the steps mentioned below to complete the e-filing process of the home loan Notice of Intimation:

• Pay the required stamp duty charges

• The Government Receipt Accounting System (GRAS) will then accept the filing fees and stamp duty payment charges

• Upload your passport-size photo and signature

• An officer from the financial institution will authorise your application

• Send a photocopy and original notification to the sub-registrar’s office

• The sub-registrar will check the authenticity of the documents and validate them.

• After that, the sub-registrar will provide a receipt regarding the filing fee and documentation fee

Following are the Notice of Intimation charges for a home loan:

• You will need to pay a filing charge of ₹1,000, irrespective of the loan amount.

• There is flexibility in the payment of Stamp Duty and Filing Fees online via the Government Receipt Accounting System (GRAS)

• During physical filing, you can pay the fee using any convenient payment mode

• There is a document handling expense of ₹300 that you will need to pay, while physical filing only

• You can also pay the fees via cheque at the sub-registrar’s office, but you will have to pay the document processing fees in cash

The NOI needs to be filed in case an agreement is not executed between the mortgagor and the mortgagee. In this case, within 30 days of the disbursement of the loan, a Notice of Intimation must be filed with the sub-registrar. 

By following this simple process, you can register the agreement: 

• There are certain guidelines and a prescribed format for preparing the notice. Make sure you prepare the notice accordingly.

• In the next step, you have to pay for the stamp duty. You must be careful while paying for the right stamp. If you have paid for the stamp duty on other documents of the same loan, you need to pay ₹100 for NOI.

• You can pay for the stamp duty either offline at the office or online through GRAS (Government Receipt Accounting System).

• The mortgagor's signature and thumb impression, along with their photographs, must be attached to the documents.

• Now, the mortgagor needs to submit all the documents along with the photocopy at the office of the sub-registrar within the deadline of 30 days.

After submission, the sub-registrar verifies all the documents and the stamp duty. After his approval, the mortgagor receives a receipt for the payments made and an acknowledgement of submission of the notice for the housing loan.

In case you have any queries, you can contact the following offices:

Before getting a home loan, you need to be aware of the Notice of Intimation and under what conditions you need to apply for this document. This helps you get home loans without much hassle.

Furthermore, if you are looking for loan offers at affordable home loan interest rates, you may check out some of the top home loan lending partners on Bajaj Markets. Compare various options and finalise a lender that best matches your requirements.