Are you planning to take out a loan against your property? If so, you need to file some essential legal documents to ensure the process goes smoothly. One such document is the NOI, which informs about the deposit of title deeds. While this may sound daunting, the good news is you can now file the NOI (full form - Notice of Intimation) for a Home Loan online. But before you dive in, it's essential to understand what the process entails, including the charges you may incur and the steps involved in registering your loan agreement with an NBFC. Don't worry; we've got you covered.
In this article, we'll provide you with all the information you need about e-filing NOI and registering your loan agreement, so you can feel confident and prepared when you take the next steps towards securing your loan.
Importance of Notice of Intimation
Legal Protection: NOIs provide legal protection by ensuring that all parties are formally informed about significant actions or changes. This helps in preventing disputes and misunderstandings.
Transparency: By issuing an NOI, parties can ensure transparency in transactions, as it serves as a formal record of communication and intent.
Legal Requirement: In many cases, issuing an NOI is a legal requirement to ensure compliance with regulations. Failure to issue an NOI can lead to legal complications and penalties.
E-filing of Notice of Intimation
Notice of Intimation is a legal document you must file with the lender to notify about the deposit of title deeds. It is an essential step in the process of obtaining a loan against the mortgage of a property. Through the introduction of e-filing, you can get the Notice of Intimation regarding the deposit of the title deed in simple steps mentioned below:
Step
Description
1
Register on the website of the concerned authority
2
Prepare the Notice of Intimation Regarding Deposit of Title Deed on an appropriate stamp paper
3
Upload the notice on the website in PDF format
4
Make the required fee payment using online payment methods
5
Wait for the verification and approval of the notice by the concerned authority
6
Receive the acknowledgement of the approved notice on the website
Notice of Intimation - Check Charges for Property Loan
Here's a table that summarises the charges for NOI in Home Loans:
Charges
NBFC
Government
Stamp Duty
Varies based on state and loan amount.
Usually ranges from 0.1% to 0.5% of the loan amount
Processing Fee
Varies based on the NBFC. Usually goes up to 3% of the loan amount
Why Collecting Notice of Intimation is Crucial for Mortgage Loans?
Mortgage loans are designed for property owners to access funds by leveraging their property's value. However, these loans involve a legal process that requires several documents, including a Notice of Intimation, to be filed and registered with relevant authorities. Here is what you need to know about the process.
Ensures Legal Compliance
Notice of Intimation is a legal document establishing the lender's right to the mortgaged property. It serves as proof of the lender's interest in the property, making it crucial to ensure legal compliance in case of any disputes or legal proceedings.
Facilitates Loan Disbursement
Filing the Notice of Intimation is mandatory to secure a home mortgage loan, and failure to do so can result in loan rejection or high-interest rates. By submitting this document, you signal your intent to pledge your property as collateral for the loan and enable the lender to initiate the loan disbursement process.
Protects Against Fraud
The NOI helps protect lenders from fraud by verifying the authenticity of the property documents submitted by borrowers. By filing this document, you demonstrate that the title deeds have been deposited with the lender and establish the lender's right to the property.
Reduces Legal Risks
Not having an NOI in place can expose borrowers to legal risks such as foreclosure or legal proceedings in case of default. By filing this document, you establish the lender's right to the property, reducing the risk of legal disputes or proceedings.
Enables Further Loan Disbursement
If you have an existing property loan and need to access additional funds, having a Notice of Intimation in place can enable you to do so. By providing proof of your existing loan agreement and the deposit of title deeds, you can apply for a top-up loan or a loan against property without going through the entire loan disbursement process again.
Conclusion
Having a Notice of Intimation is crucial in obtaining a mortgage loan. It establishes the lender's right to the mortgaged property, enables loan disbursement, protects against fraud and legal risks, and opens up possibilities for further loan disbursement. By understanding the importance of this document, borrowers can ensure a smooth and hassle-free home mortgage loan process with better interest rates.
We at Hero FinCorp can provide a Loan Against Property of up to Rs 8 crore, depending on the market value of your property and other eligibility factors, for a tenure of up to ten years at the best interest rates. Eligible applicants can get a loan of up to 75% of the mortgaged property value. The applicant should be an entrepreneur running a business for at least three years.
Frequently Asked Questions
Why is e-filing the NOI important for home loans?
E-filing the NOI simplifies the process of notifying authorities about the deposit of title deeds, making it faster and more convenient. It helps ensure that all legal requirements are met, preventing delays in loan disbursement.
How does filing an NOI protect against fraud?
Filing an NOI verifies the authenticity of the property documents and establishes the lender's right to the mortgaged property. This helps prevent fraudulent activities and ensures that the loan process is transparent and secure.
Why is the Notice of Intimation important for a mortgage loan?
The NOI ensures legal compliance, facilitates loan disbursement, protects against fraud, reduces legal risks, and enables further loan disbursement. It establishes the lender's right to the mortgaged property and is a mandatory document in the home mortgage loan process.
How do I register a loan agreement with an NBFC?
To register a loan agreement with an NBFC, draft the agreement on appropriate stamp paper, sign it with co-borrowers and witnesses, submit it along with required documents to the NBFC, pay applicable registration and stamp duty fees, and then the NBFC will register the agreement with the Sub-Registrar of Assurances.
Manya is a seasoned finance professional with expertise in the non-banking financial sector, offering 3 years of experience. She excels in breaking down complex financial topics, making them accessible to readers. In their free time, she enjoys playing golf.
