What is NOI Full Form in Banking?
The NOI full form in Banking is Notice of Intimation. A Notice of Intimation (NOI) is a document required for registering a house loan. This document informs authorities that a housing loan has been funded. The practice of providing a notice of intimation has been in effect since April 1, 2013, to prevent property fraud, numerous registrations of the same dwelling, and several loans on the same property.
How does the NOI work in banking?
To begin with, a notice of intimation is not required if both parties, the receiver and lender, agree to the terms of the agreement during the home loan application process. If a borrower has to register the agreement within 30 days, the lender sends a notice of intimation to the Sub-Registrar’s Office, which has authority over the property. Borrowers are responsible for filing the notice of intimation, and not filing the notice of intimation will result in penalties.
Procedure for filing the NOI:
The first step is to pay the stamp duty fees. That is, 0.1% if the loan amount is less than Rs 500000/-, and 0.2% if it exceeds Rs 500000/-. The next step is to attach a passport-sized image of the applicant and the mortgagor’s signature. Then, it is important to obtain an official signature and seal from an employee of the lending institution. The next step is to submit a photocopy and original of this application to the sub-registrar’s office. Finally receive the filing receipt and stamp duty fees.
