Recent years have seen the construction of residential properties on a very large scale in India. Most of these properties have been bought by interested home owners by availing home loans, a trend that continues. Financial institutions have backed borrowers with strong financial credentials to pursue their dream of buying a home through a home loan, keeping the repayment structure borrower-friendly. This housing revolution of sorts has ensured a home for most working-class Indian families.

Fullerton Grihashakti, a home loan venture launched by Fullerton India, aims at helping working-class people realise their dream of affordable housing. They offer home loans for new, under construction, and resale property of up to Rs. 1 crore* with flexible repayment tenures. Many institutions offer online solutions like interest calculators, EMI calculators for home loans, bike loan EMI calculators, etc. One can visit their official website to avail of the benefits of the EMI calculator to pre-calculate the EMI amount, interest amount, and total repayment amount.

What are NOI charges?

NOI or Notice of Intimation is a vital part of the procedure involved in home loan registration. The intimation document presents a legal notification to safeguard the interest of the parties involved. 

When the loan is allocated to the borrower for said property, a property registration with the housing registrar is needed to ensure no new borrower approaches them for loans against the same property.

The NOI is undertaken by housing finance institutions to prevent fraudulent activities related to home loans. It helps the authorities eliminate multiple registrations on the same property.

NOI charges for home loans are levied on the borrower of the home loan and not the financial institutions. The borrower must submit the NOI to the registrar or sub-registrar office within 30 days of securing the loan amount.

Working of NOI –

• When any loan application is submitted to the lending institution, they form a written agreement stating the terms and conditions of the loan. Once the borrower and institutional officials sign the agreement, it is registered. For such situations, an NOI need not be registered.

• It is the responsibility of the borrower to submit a written NOI to the registrar’s office that controls the jurisdiction of the property’s location. The time limit to submit the document is 30 days from the date the first or full loan amount is secured.

• When more than one property is attached as collateral for a home loan by the same borrower, an NOI document has to be submitted for the properties to the registrars with the jurisdiction of the property locations.

• Any borrower not submitting the NOI to the officials within the available tenure is legally charged with penalties described as per the updated Registration Act.

Steps for filing NOI

Below are the steps for presenting the notice of intimation:

• To pay NOI charges for home loan, Rs. 1000/- is charged online, and for offline applications, an additional Rs. 300/- is charged for document handling.

• As per the Maharashtra Stamp Act of 1958, if the amount of the loan is under Rs. 10 lakhs, 0.10% of the loan amount is charged, and when the loan amount is above Rs. 10 lakhs, a stamp duty of 0.20% of the loan amount is charged.

• The stamp duty and filings charges must be borne by the borrower and paid to the Government Receipt Accounting System (GRAS) or in cash to the sub-registrar office.

• Two passport-size photographs with the borrower’s signature must be submitted along with the application.

• The official stamp and signature of the lending institution that authenticates the loan process and property details.

• The registrar or sub-registrar verifies all the documents and after successful processing, a payment receipt of stamp duty and NOI filing fees is generated for the borrower.

Conclusion

The Notice Of Intimation for a home loan is a factor that most lending institutions have become very particular about. The home loan borrower must submit all the legal and financial documents related to the loan within 30 days for a hassle-free post-home loan process. Failing to register the property or filing NOI can lead to legal penalties for both parties involved in the loan agreement.