When you apply for a Home Loan in India, you must file several official documents and agreements. The most basic yet critical ones include identity proofs like PAN and Aadhaar and income statements. Then, depending on what Loan you opt for and under what lending conditions, you must submit documents related to ITR, property, collateral, etc. You must submit a Notice of Intimation for a Home Loan along with the basic registration and application documents.
This registration document is a legal, written notification to property authorities that a Home Loan has been sanctioned and informs the registrar about its disbursal. It safeguards the financial rights and interests of the parties involved, i.e., the society, the lender, and the applicant.
How does it work?
The Notice of Intimation for Home Loans decreases financial fraud in the housing sector. If a bungalow is sold for Rs. 2 crore, and Mr. X takes out a Home Loan of Rs. 1.5 crore to buy it, then in the absence of an NOI, there is no document to prove that a Loan has already been taken out for the property in context.
This means that Mr. X can borrow funds from multiple sources and lending institutions for the same property, which leads to financial fraud in the future. Therefore, the new rules since 2013 dictate that an NOI is an important part of the home registration process. When you apply for a Home Loan, the non-banking financial company will draw up a written agreement with you declaring the transfer of funds.
A document is officially signed by the two parties involved. Without a written contract, the Home Loan applicant must submit a Notice of Intimation to the sub-registrar’s office (according to geographical jurisdiction) within 30 days. The NOI is completely the applicant’s responsibility. If the NOI is not filed, a penalty can be charged.
Procedure for filing NOI
The Notice of Intimation charges for a Home Loan are Rs. 1,000 when filed online. An additional fee of Rs. 300 must be paid as document handling charges when filed offline. Pay the necessary stamp duty fees, which are 0.1% if the Loan amount is less than Rs. 5 lakh and 0.2% if it is greater. Attach the applicant’s passport-size photograph along with the mortgagor’s signature.
Take the official signature and seal of the lending institution’s employee. Send a photocopy and original document of this application to the sub-registrar’s office. Receive the receipt for filing this and the stamp duty fees.
Conclusion
The documents required for NOI filing include stamp duty papers and a treasury receipt for 0.2% of the Loan amount, the applicant’s photograph, a document of declaration, a PAN Card, an Index II property document, a letter of intimation, Loan documents, and a duly signed and sealed original letter from the lending institution. This requirement is not new, but since its rules changed in 2013, many lending institutions have become stricter in their collection.
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