• Stamp duty

We have taken a Term Loan of Rs.500000/- from a co-operative credit Society/Co-op bank in Maharashtra State . As security we have executed a simple mortgage deed of Land which is duly registered by paying applicable stamp duty.I want to Know whether the Bank is required to collect any Stamp duty for Loan Agreement separately over and above the duty paid on Mortgage deed ?
Asked 4 years ago in Property Law
Religion: Hindu

4 answers received in 30 minutes.

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18 Answers

1. Loan agreement will be on a nominal stamp paper of Rs. 100

2. Yes the bank may require you to pay the stamp duty on the loan agreement

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

loan agreement is also required to be stamped

2) bank will recover stamp duty charges from the borrower

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

A minimal Stamp duty has to be paid for the loan agreement , As per Article 5(h) of Schedule I of The Bombay Stamp Act, 1958. Stamp duty is Rs.100/

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

The loan agreement is executed on 500 Rs. stamp depends on state to state. Both the documents are for different purpose so separate stamp duty.

Both can also be execute in one but to avoid ambiguity, Dual deeds, executed.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1, No there is no need for separate payment towards stamp duty of the loan agreement.

2. However the established practice is to make that loan agreement executed on a Rs.50/- stamp paper or by affixing a revenue stamp.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

whether the Bank is required to collect any Stamp duty for Loan Agreement separately over and above the duty paid on Mortgage deed ?

Answer: No the bank will not collect separate stamp duty on the loan agreement.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1. If the land is not an agricultural land then the said Bank can keep in deposit with it the original title deed of the said land as mortgaged property for giving you the said loan on which SARFAESI action can be initiated by the lending bank in case you fail to repay the loan and your loan account becomes NPA.

2. In the above case, an agreement for creating mortgage printed on a Rs.10 stamp paper shall have to be signed by you and the Bank official.

3. You shall have to issue one letter to the bank stating that you have deposited your original title deed with the bank on a particular date for creating mortgage on the said property. This is done by the bank to ensure that you can not falsely lodge a missing diary later on before the police stating that you have lost the said original title deed and had never deposited with the bank.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

No, they can’t as the scheme of collecting stamp duty is of the revenue department and that is also for the state welfare.

If they ask for any, say no them and inform them about the legal boundatikns on them.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Th stamp duty paid on the mortgage deed will be sufficient, you do not have to pay any stamp duty for the loan agreement if it is not a registered document.

If you are registering the loan agreement document then you may have to pay the registration charges and applicable stamp duty.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

Bank will include that amount in loan disbursement charges.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1) stamp duty on loan agreement would be nominal

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

Yes there will be some minimum stamp duty.

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Any contract/agreement of 100 rs or above is required to be registered and execute on stamp of Rs. X,

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

If the loan agreement document is not a registered document then there is no stamp duty payable.

The loan agreement need not be a registered document.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

No just an affidavit on rs 100 stamp paper only.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

The bank cannot demand any stamp duty in respect of the term loan. Whenever a mortgage is being created then the mortgage deed will be written on 100 rupees stamp paper therefore you have to pay 100 Rupees stamp paper to the bank and no other stamp duty is applicable on Mortgaged Loan.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

.Loan agreement is just an agreement which shall have to be typed on a Rs.10 stamp paper. The Bank will get your signature on their printed form after filling up the blanks and taking your signatures thereupon and then take that stamp paper signed by you writing thereupon 'LOAN AGREEMENT EXECUTED WITH Mr.................' .

2. Thereafter the lending Bank will attach the printed loan agreement as stated above with the said stamp paper which will be treated as a loan agreement executed on appropriate stamp paper as per law.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

Stamp duty is paid by the individual to govt. Bank doesn't have any authority to collect the same. You can directly pay the same time govt as per applicable rates.

Prashant Nayak
Advocate, Mumbai
27289 Answers
88 Consultations

4.4 on 5.0

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