Does Home Loan Include Stamp Duty Registration?

Most of the homeowners opt for a home loan to finance their home purchase. When I availed of a home loan, I was a bit confused and this query, “Does home loan include stamp duty registration?” came to my mind. On discussing with my bank’s relationship manager, I realised that home loans do not include stamp duty and registration fees because these are overhead costs. 

Is Stamp Duty and Registration Included in Home Loan?

As I already said that these charges are not part of the home loan and I was said that I am responsible for paying these extra costs out of pocket in addition to the down payment because they are not included in the home loan amount. 

The relationship manager said that in its circular on "Housing Loans by Commercial Banks – Loan to Value (LTV) Ratio" dated February 3, 2012, the Reserve Bank of India advises banks not to include stamp duty, registration, and other documentation fees in the home loan charges of housing properties in order to avoid reducing the effectiveness of the LTV ratio. 

The government will cover the cost of these fees. The buyer of the property is responsible for paying stamp duty and registration separately; these expenses are not covered by your financing.

I hope this helps!

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Hey Buddy,

Before beginning my discussion about whether a home loan including stamp duty registration possible or not, I would like to say that when buying a house, there are many formalities. These requirements can range from debt responsibilities to legal documentation. When purchasing a home, it is essential to have clear, crisp paper because you will need these legal documents for a variety of purposes for a very long time. 

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Stamp duty, registration fees, and other relevant activities should be handled first. You might get into a lot of problems if there is a delay or if there is a problem with them.

The state government imposes a specific kind of tax on financial transactions known as stamp duty. The stamp duty fees must be paid by every buyer of real estate. Otherwise, they won't be taken into account as the property's legitimate owner. 

In accordance with the Indian Stamp Act of 1899, this Tax Act became operative.

Stamp duty is the tax you pay to claim the conveyance deed, title deed, sale deed, and power of attorney paper, to put it simply. The actual value and the type of property you are buying define the precise duty that is due on each document. The sum is determined using the property's higher value.

No, as they fall within the category of overhead expenses, Home Loan does not pay for stamp duty or registration fees. In order to avoid inconvenience, it is crucial to saving aside enough money to cover these costs in advance.

I hope this clarifies your query, is stamp duty and registration included in home loan.

These costs are not covered by the bank because they are extra to the price of the property. The cost of registration and stamp duty will not be included in the property valuation if you apply for an SBI Home Loan. However, some banks are already beginning to extend big loans that cover the cost of registering.

I would like to conclude here about the home loan including stamp duty registration. I hope this helps:)

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