Many home buyers budget carefully for the 5% to 7% stamp duty and ₹30,000 registration fee on their flat purchase, only to be surprised at loan disbursement by another charge: MODT stamp duty and Notice of Intimation charges.
Whether you are taking a fresh home loan, a loan against property (LAP), a home loan balance transfer or top-up, or a working capital overdraft secured by property, Maharashtra taxes the creation of the mortgage separately from the purchase of the property.
What is an MODT (Equitable Mortgage) vs a Registered Mortgage?
Under Section 58(f) of the Transfer of Property Act, 1882, a mortgage by deposit of title deeds — commonly called an equitable mortgage — is created when a borrower delivers the original title documents of an immovable property to a lender (in a notified town) with the intent to create security for a loan.
To record that deposit, banks, housing finance companies (HFCs) and NBFCs take a Memorandum of Deposit of Title Deeds (MODT) (or an agreement relating to deposit of title deeds). In Maharashtra, lenders use two routes to perfect this security in the public records:
- Equitable mortgage + Notice of Intimation (Section 89B route): You deposit the original title deeds at the lender's branch and sign the MODT stamped under Article 6(1) on GRAS/e-SBTR. Instead of visiting the Sub-Registrar to register a full mortgage deed, a Notice of Intimation (NOI) is filed online (or physically) with the Sub-Registrar within 30 days under Section 89B of the Registration Act, 1908.
- Registered MODT / Simple Mortgage (Article 40(b) route): Some banks, co-operative banks or NBFCs (especially for high-value LAP, business loans or plots outside notified equitable-mortgage towns) require you to appear before the Sub-Registrar of Assurances and register the MODT or a Simple Mortgage Deed without possession. Both attract the same 0.3% stamp duty rate, plus the standard 1% registration fee capped at ₹30,000.
Exact MODT stamp duty and filing charges in Maharashtra
Under Article 6(1) of the Maharashtra Stamp Act (and identically under Article 40(b) for a simple mortgage without possession), stamp duty is calculated on the sanctioned loan amount secured by the document, not on the property's market value:
| Loan / Fee Component | Statutory Rate in Maharashtra | Example on a ₹50 lakh Home Loan / LAP | Example on a ₹2 crore LAP / Business OD |
|---|---|---|---|
| Stamp duty for loan up to ₹5 lakh (Article 6(1)(a)) | 0.1% of loan amount (minimum ₹100) | Not applicable (loan > ₹5 lakh) | Not applicable (loan > ₹5 lakh) |
| Stamp duty for loan above ₹5 lakh (Article 6(1)(b)) | 0.3% of loan amount, capped at ₹20 lakh | ₹15,000 (0.3% × ₹50,00,000) |
₹60,000 (0.3% × ₹2,00,00,000) |
Notice of Intimation filing fee (Section 89B route, via efilingigr) |
₹1,000 filing fee + ₹300 online document handling charges | ₹1,300 | ₹1,300 |
| Registration fee (only if a Registered Mortgage / Registered MODT is executed at the Sub-Registrar instead of an e-filed NOI) | 1% of loan amount, capped at ₹30,000 (plus scanning charges) | ₹30,000 (if registered at SRO) | ₹30,000 (if registered at SRO) |
| CERSAI charge registration fee (Central Registry under SARFAESI Act) | ₹50 (for loans up to ₹5 lakh) or ₹100 (above ₹5 lakh) + 18% GST | ₹118 | ₹118 |
Note on the ₹20 lakh cap: Under Article 6(1)(b), the maximum stamp duty on a deposit of title deeds is capped at ₹20 lakh (which is reached only when a single loan facility exceeds ₹66.67 crore). For consortium or multiple-lender corporate facilities secured by a single security trustee document, separate Stamp Act ceilings apply.
Use our Maharashtra stamp duty calculator to compute both your flat purchase duty and your home loan mortgage duty side by side.
The 30-day rule for Notice of Intimation under Section 89B
Before 2013, equitable mortgages by deposit of title deeds were private arrangements between the borrower and the bank — they did not show up on the Sub-Registrar's Index II or search report, enabling fraudsters to take multiple loans on the same flat.
To stop this, Maharashtra inserted Section 89B into the Registration Act, 1908 (effective 1 April 2013):
- Mandatory 30-day deadline: Every person who mortgages immovable property by way of deposit of title deeds must file a Notice of Intimation with the Sub-Registrar within whose jurisdiction the property is situated within 30 days from the date of deposit of title deeds.
- How e-Filing works today: If your lender is enrolled on IGR Maharashtra's e-Filing module (
efilingigr.maharashtra.gov.in), the bank initiates the Notice of Intimation online, Aadhaar e-signs it with the borrower, pays the 0.3% stamp duty and ₹1,000 + ₹300 fee via GRAS, and submits it digitally without your having to visit the Sub-Registrar's office. - What if the bank is not on e-Filing or 30 days are missed? If the lender does not use online e-Filing, the borrower must submit the physical Notice of Intimation (with passport photos, thumb impression, GRAS challan and bank confirmation letter) at the Sub-Registrar's office within 30 days. The Sub-Registrar's software does not accept a Notice of Intimation after 30 days. If you miss the 30-day window, the lender will usually require you to execute a full Registered Mortgage Deed (paying the ₹30,000 registration fee) and non-filing can attract penalties under Section 89C.
How MODT applies in balance transfers, top-ups and business renewals
- Home loan or LAP balance transfer: When you move a ₹60 lakh loan from Lender A to Lender B, Lender B creates a fresh mortgage and you must pay 0.3% (₹18,000) fresh MODT stamp duty plus Notice of Intimation fees. Earlier stamp duty paid to Lender A cannot be set off against Lender B's mortgage. Always factor this into our home loan balance transfer calculator.
- Top-up loan with the same lender: If your existing lender sanctions a ₹15 lakh top-up loan over and above your running ₹50 lakh home loan, supplementary MODT stamp duty of 0.3% is payable only on the additional ₹15 lakh (
₹4,500), provided the existing mortgage continues and only a supplementary memorandum is executed for the enhanced limit. - Working capital (CC / OD) annual renewal: If your Cash Credit or Overdraft limit is renewed at the same sanctioned amount without executing a fresh mortgage instrument, no fresh MODT stamp duty is payable. If the limit is enhanced (for example, from ₹2 crore to ₹3 crore), 0.3% stamp duty is payable on the enhanced ₹1 crore portion (
₹30,000).
Closing your loan: don't leave the mortgage charge on your Index II!
Thousands of homeowners in Mumbai, Thane and Pune collect their original agreement and share certificate when their home loan finishes, lock them in a cupboard, and discover 10 years later — when selling the flat — that the bank's mortgage is still showing as an active encumbrance in the Sub-Registrar's records.
Here is how to close the loop cleanly depended on how your mortgage was recorded:
- Collect original documents within 30 days (RBI rule): Under RBI's circular dated 13 September 2023 (effective 1 December 2023, now part of the 2025 Responsible Business Conduct Directions), every bank, HFC and NBFC must release all original immovable property documents within 30 days of full repayment or settlement of a personal loan, and remove charges registered with any registry. If the delay is attributable to the lender, it must compensate the borrower at ₹5,000 for each day of delay.
- Verify CERSAI charge satisfaction: Ask the lender for confirmation that the CERSAI charge created at disbursement has been marked satisfied / deleted.
- Release Deed / Reconveyance Deed at the Sub-Registrar:
- If you had executed a Registered Mortgage Deed or Registered MODT, a formal Release Deed (Reconveyance Deed) signed by the bank's authorised officer must be registered at the Sub-Registrar's office so the release reflects on Index II.
- If a Notice of Intimation was filed under Section 89B, obtain the bank's No-Dues Certificate (NDC) and letter of release of equitable mortgage, and ensure the release/reconveyance is recorded so future title searches show the charge as satisfied, along with cancelling the bank's lien in your co-operative housing society's register.
How Biz Corp Solutions helps
We help home buyers, property owners and MSME borrowers across Thane, Badlapur, Mumbai and Pune structure home loans and loans against property with full upfront transparency on every statutory cost — from flat purchase stamp duty to Article 6(1) MODT duty, e-Filing charges and balance-transfer break-even math.
This guide reflects Articles 6 and 40 of the Maharashtra Stamp Act (as modified up to 22 July 2026), Section 89B of the Registration Act 1908, IGR Maharashtra fee tables and RBI's Responsible Business Conduct Directions as of October 2026. Confirm exact e-challan heads and Sub-Registrar jurisdiction with your lender's legal panel before paying.