Does home loan amount include stamp duty?


Home loan doesn’t cover stamp duty and registration charges

Purchaser should pay following stamp duty & Registration charges and these charges doesn’t cover under home loan

  1. Sale Agreement franking
  2. Stamp Duty and Registration fee for Deed Registration
  3. Stamp Duty and Registration fee for MODT Registration


In below, we explained in detail

1. Sale Agreement Franking:

Sale Agreement is part of home loan documentation. we must frank the sale agreement and submit it to bank to process loan application. The franking charge is 0.1% of considerable value.

For example:

If your buying price is Rs. 45 lakhs,

The franking charge is Rs. 45,00,000 X 0.1% = 4500

Franked sale agreement looks like below image

Note: The franking charge 0.1% is offset at the time of sale deed registration



2. Deed Registration:

Deed Registration charges range from 3% - 7% of consideration value, depending on the state where the property is located. (Stamps and Registration Department comes under state government so charges are different based on the state where the property located)

Following are the deed registration charges in Bengaluru

  • Stamp Duty: 5.1%
  • Registration Fee: 1%
  • Cess: 0.5%
  • Affidavit Rs. 40
  • Scanning Rs. 750 (approx)


3. MODT Registration:

Abbreviation of MODT is “Memorandum of Deposit of Title Deed”

MODT is the understanding given by borrower that borrower deposits the tile documents of property with the bank in return for a loan. Tile documents include Registered Deed.

Usually, MODT is registered immediately after the deed registration in sub-registrar office (Back to back process)

Below are the charges for MODT Registration. Below % is based on the loan sanction amount

  • Stamp Duty: 0.2%
  • Registration fee 0.1%
  • Scanning fee: Rs. 350 (approx)

The registered MODT looks like below image


We provide assistance for sale agreement franking + Deed Registration + MODT Registration

To opt for our service, please Whatsapp to + 9 1 - 9 7 4 2 4 7 9 0 2 0

Thank you for reading…

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