2 min
11 October 2024
If you are planning to buy a property or take a home loan in Tamil Nadu, it is essential to understand MODT charges in Tamil Nadu. These charges often come as a surprise to many homebuyers and can add to the cost of your property purchase. Knowing what they are and how they work will help you budget better and make informed decisions.
This guide will explain everything you need to know about MODT charges, why they are important, how much you need to pay, and ways to manage them.
Simply put, MODT serves as proof that you have pledged your property with the lender until the loan is fully repaid.
When applying for a home loan, the lender typically registers the MODT with the Sub-Registrar’s office. This registration comes with certain charges, which are known as MODT charges.
It is important to keep these charges in mind when planning your finances. Ignoring them can lead to unexpected expenses later on.
When you are planning to buy a property, it is crucial to include MODT charges in your budget. This will give you a clear picture of the total cost and help you plan your finances better.
Here are a few benefits of opting for a home loan with us:
1. High loan amount: Get a home loan of up to Rs. 15 crore* to turn your dream home into reality.
2. Low interest rates: Enjoy interest rates starting from 8.25%* p.a, with EMIs as low as Rs. 741/lakh*.
3. Quick approval: Get approval within 48 Hours* of applying – sometimes even sooner.
4. Long repayment tenure: Repay your loan comfortably with tenure of up to 32 years.
5. No foreclosure fee*: Individual borrowers with a floating rate of interest can prepay or foreclose their loan at no extra charge.
6. Easy application: Benefit from our doorstep document collection service for a hassle-free process.
7. Balance transfer facility: Transfer your existing home loan and get a top-up loan with better terms.
Ready to take the next step toward your dream home? Apply for a Bajaj Housing Finance Home Loan today.
This guide will explain everything you need to know about MODT charges, why they are important, how much you need to pay, and ways to manage them.
What is MODT?
MODT stands for Memorandum of Deposit of Title Deed. It is a legal document that the lender requires when you take a home loan. When you deposit the title deeds of your property with the lender, this document confirms that the lender has the right over the property in case of a default.Simply put, MODT serves as proof that you have pledged your property with the lender until the loan is fully repaid.
Why are MODT charges important?
MODT charges protect the lender's interest. They ensure that you cannot sell or transfer the property to anyone else without clearing the loan first. This way, the bank has a legal right to the property, reducing the risk in case you fail to repay the loan.When applying for a home loan, the lender typically registers the MODT with the Sub-Registrar’s office. This registration comes with certain charges, which are known as MODT charges.
How much are MODT charges in Tamil Nadu?
In Tamil Nadu, MODT charges are calculated based on two components:- Stamp duty: This is a fixed percentage of the loan amount. In Tamil Nadu, the stamp duty for MODT is 0.5% of the loan amount, capped at Rs. 30,000.
- Registration fee: This is an additional charge required to register the MODT at the Sub-Registrar’s office. In Tamil Nadu, the registration fee is 1% of the loan amount, capped at Rs. 6,000.
- Stamp duty: 0.5% of Rs. 30 lakh = Rs. 15,000 (capped at Rs. 30,000)
- Registration fee: 1% of Rs. 30 lakh = Rs. 6,000
When are MODT charges paid?
MODT charges are typically paid at the time of loan disbursement. The lender will inform you about these charges, and you will need to make the payment to register the MODT with the Sub-Registrar’s office. Without this registration, the bank cannot claim legal rights over the property.It is important to keep these charges in mind when planning your finances. Ignoring them can lead to unexpected expenses later on.
Can you avoid MODT charges?
No, you cannot avoid MODT charges as they are mandatory for registering the loan agreement with the Sub-Registrar’s office. However, you can plan better by knowing the amount in advance. Some lenders might include these charges in the loan processing fee or offer discounts during promotional periods. It is always a good idea to discuss this with your lender before taking the loan.How MODT charges affect your home loan
MODT charges are one of the many additional costs that you need to consider when taking a home loan. They add to the overall cost of borrowing, along with processing fees, legal charges, and stamp duty.When you are planning to buy a property, it is crucial to include MODT charges in your budget. This will give you a clear picture of the total cost and help you plan your finances better.
How Bajaj Housing Finance Home Loan can help
If you are exploring funding options for purchasing your home, consider Bajaj Housing Finance Home Loan. Low interest rates, quick approval and disbursal make the loan process smooth and stress-free.Here are a few benefits of opting for a home loan with us:
1. High loan amount: Get a home loan of up to Rs. 15 crore* to turn your dream home into reality.
2. Low interest rates: Enjoy interest rates starting from 8.25%* p.a, with EMIs as low as Rs. 741/lakh*.
3. Quick approval: Get approval within 48 Hours* of applying – sometimes even sooner.
4. Long repayment tenure: Repay your loan comfortably with tenure of up to 32 years.
5. No foreclosure fee*: Individual borrowers with a floating rate of interest can prepay or foreclose their loan at no extra charge.
6. Easy application: Benefit from our doorstep document collection service for a hassle-free process.
7. Balance transfer facility: Transfer your existing home loan and get a top-up loan with better terms.
Ready to take the next step toward your dream home? Apply for a Bajaj Housing Finance Home Loan today.
