If you have recently taken a home loan, you may have heard of the term “Notice of Intimation”. But what does it mean and why does it count?
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Imagine finally finding the perfect home after months of searching, negotiating, and getting your home loan approved. You’re finally ready to make that big move, but hold on a minute – there’s one crucial document that you cannot afford to forget – the Notice of Intimation for Home Loan.
Section 89B of the Registration Act, 1908, mandates the submission of a notice of intimation (NoI) to the registrar to protect the lending institution’s interests. The recent implementation of the NoI rule, effective since April 1, 2013, has greatly reduced the occurrence of fraudulent practices.
The Notice of Intimation (NOI) is an essential step in the home loan registration process, introduced to combat property fraud. This notifies the registrar that the loan has been funded and prevents fraudulent practices such as multiple registrations of the same property.
How Does Notice of Intimation for Home Loan Works?
When you apply for a home loan, the lending institution will provide you with an agreement that outlines the terms of your mortgage. If both you and the institution agree to the terms and the agreement is registered, you won’t need to file a Notice of Intention (NoI).
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However, if the agreement is not registered, you must file an NoI with the Sub-Registrar Office within 30 days of receiving your first loan disbursement.
It’s important to note that it’s your responsibility as a borrower to file the NoI, not the lending institutions, to file the NoI. Failure to do so can result in penalties described in Section 89C of the Act, and it could put the legality of your mortgage at risk.
To avoid any complications, it’s essential to ensure that you register the agreement and file an NoI within the given timeframe. By doing so, you’ll safeguard the legality of your mortgage and ensure that your interests are protected.
Notice of Intimation Charges for Home Loan
When obtaining a home loan, borrowers must file a Notice of Intimation (NoI) with the Sub-Registrar Office. This document informs the government of the mortgage and protects the interests of both the borrower and the lender. There are specific charges associated with filing an NoI that borrowers should be aware of before applying for a home loan:
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Notice of Intimation Fees
- It’s important to note that a filing charge of Rs 1000 must be paid, irrespective of the loan amount.
- If you choose to file online, you will not be required to pay the document handling expenses of Rs 300.
- If you opt for e-filing, the Stamp Duty and Filing Fees must be paid electronically via GRAS (www.gras.mahakosh.gov.in).
- In the case of physical filing, the Stamp Duty and filing fees can be paid using any authorized method, including GRAS.
- If you’re paying the filing fee by check, ensure it is made payable to the corresponding Sub Registrar’s office in your respective city.
- The document processing fees must be paid in cash.
A Guide to e-Filing Notice of Intimation for Home Loan
A step-by-step guide to filing a Notice of Intimation for a home loan electronically.
If you’re considering e-filing a Notice of Intimation (NoI) for your home loan, this guide will walk you through the steps. By following these simple steps, you can ensure that the process is completed accurately and without any complications:
- To begin filing an NoI for your home loan, you will need to make the payment for Stamp Duty using GRAS.
- Remember to attach passport-sized photos of your signature to the application.
- Have an authorized official from your financial institution sign the application to authenticate it.
- Afterward, send the original application and a photocopy of the notification to the Sub Registrar.
- Once the Sub-Registrar has thoroughly reviewed all the documents for accuracy, they will provide you with a receipt for the filing fee and document handling fees.
Documents Required for e-Filing a Notice of Intimation for Home Loan
When availing a home loan, it is necessary to file a Notice of Intimation with the Registrar of Assurance through e-filing. To complete this process, certain documents are required:
|eSBTR / Stamp Papers / Franked for Deposit Memorandum||Authentic signatures and stamps must be procured from the bank’s officials|
|Photocopy of title deeds with bankers stamp and signature||Authentic signatures and stamps must be procured from the bank’s officials|
|Passport-sized photograph||It is required of both the borrower and the co-applicant|
|Accepted Sanction Letter (photocopy)||Must have signatures from lenders and credit managers|
|PAN Card||It is required of both the borrower and the co-applicant|
|Recent Index||2 copies|
|Notice Of Intimation regarding mortgage||Must be presented through deposit of title deed with Rs. 100 stamp paper or franking and Rs. 300 in addition to handling fees. The “Notice of Intimation” must be signed by a bank representative with self-attested identification.|
|Deposited Documents||Photocopy of all the deposited documents|
|Original letter from the bank||It should include the routing information|
How Can NoBroker Help?
In conclusion, a notice of intimation for a home loan is an important document that serves as formal communication between a lender and a borrower. It informs the borrower about the lender’s decision to grant the loan and outlines the terms and conditions of the loan agreement.
NoBroker’s legal experts can assist you in various ways with the Notice of Intimation for your home loan. They can provide guidance on your legal rights and obligations as a borrower, helping you make informed decisions. If you require assistance with your Notice of Intimation, click on the link below or call NoBroker for expert help.
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Frequently Asked Questions
Ans. A Notice of Intimation is a legal document that is required to be submitted to the Sub-Registrar’s office by a borrower who has mortgaged their property to obtain a home loan. It informs the Sub-Registrar that the property has been mortgaged and the lender has a right over it until the loan is repaid.
Ans. The full form of Notice of Intimation in home loan is ‘NoI’ which stands for ‘Notice of Intimation.’
Ans. A Notice of Intimation is required to protect the interests of both the borrower and the lender. It ensures that the property is not sold without the knowledge of the lender, and the lender can take legal action if the borrower defaults on the loan.
Ans. Failure to file a Notice of Intimation can put the legality of the mortgage at risk and harm the interests of both parties. If the agreement is not registered, the borrower has 30 days from the disbursement of the first loan amount to submit a Notice of Intimation to the Sub-Registrar’s office. Not doing so can result in penalties as described in Section 89C of the Act.
Ans. It is the borrower’s responsibility to file the Notice of Intimation, not the lending institutions. Borrowers should ensure that they register the agreement and file a Notice of Intimation within the given timeframe to avoid any complications.