In very simple terms, Notice of Intimation (NOI) is a part of the home loan registration process. It is submitted in order to inform the registrar office regarding the disbursement of a home loan. It came into effect from 1st April 2013 to curb the fraud related to the properties like multiple registrations of a home or multiple loans against a single home.
Let’s understand it in a layman’s language. When you apply for a home loan, the money lending institution or the bank prepares an agreement, and both the parties agree to its terms and the registration of this agreement is done. In such a case, there is no need for NOI. However, if the registration of the agreement is not done, then the mortgagee (the borrower) gets 30 days from the disbursement of the first loan amount, to file an NOI to the Sub-Registrar Office under whose jurisdiction the particular property falls. It is the sole duty of the borrower to file the Notice of Intimation and not of the financial institution. You may hire a third-party executive for this purpose.
E-filing simply refers to the filing done through an online method. This system came into effect on 1st April 2013, and the home loan borrowers can now file Notice of Intimation via aqonline method. It has been specified in Section 89B of the Registration Act of 1908. It 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 of the lending and borrowing parties practised fraudulent activities related to purchasing and selling a home. Some properties showed multiple registrations, which caused loss 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 of filing a Notice of Intimation 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.
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, Notice of Intimation must be filed with the sub-registrar. By following these basic steps, one 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, for the same loan, the stamp duty is paid but for any other document, then for NOI, INR 100 must be paid).
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 with the documents.
Now, it's the task of the mortgagor 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 of Intimation for the housing loan.
The Notice of Intimation for home loan must be filed within 30 days from the disbursement of the first loan amount.
Both online and physical mode of filing a Notice of Intimation is made available by almost all banks and financial institutions.
The filing of NOI has to be done with the sub-registrar’s office who holds the jurisdiction of the particular property.
On all working days, the filing of Notice of Intimation home loan could be done.
There is a prescribed format for the notice in which you need to prepare your NOI and then attach the proper stamp by paying for it.
The photo, thumb impression, and signature of the mortgagor must be done.
A banker or employee of the financial institution will verify and approve the document.
Finally, the NOI along with a photocopy has to be submitted in the sub-registrar office.
In case the mortgagor pays for stamp duty as per Article 6 on another document and INR 100 for the notice, then the true attested copy of another document has also to be submitted.
The sub-registrar verifies and approves the stamp duty and passes the receipt of the filing. And then you get an acknowledgement of the submission of NOI.