If you’re planning to take a home loan, you’ve probably come across the term “Memorandum of Deposit of Title Deeds” or MoDT. A common question we receive at Lendly is whether registering a MoDT at the Registrar’s office is mandatory.
Here’s the quick answer: It depends!
All nationalised banks, NBFCs (Non-Banking Financial Companies), and most private banks require borrowers to register a MoDT. Registration gives the lender a legally recognized right over your property, securing their interest.
However, some private banks simplify this process by not requiring a formal MoDT registration at the Registrar’s office. Instead, they only require you to pay Stamp Duty based on the loan amount. This stamp duty payment still legally secures the lender’s right to your property, but without the added step (and cost) of formal registration.
Why Does This Matter to You?
Understanding the differences can help you choose the right lender and save significant time, money, and paperwork. A registered MoDT often involves higher upfront costs and administrative procedures. Opting for a bank that only requires Stamp Duty payment can streamline your borrowing experience, especially if you’re looking for a hassle-free process.
How Lendly Can Help
At Lendly, we understand every borrower’s needs are unique. That’s why we help you compare options across different banks and NBFCs, clearly explaining the implications of MoDT registration versus just Stamp Duty payments. Our goal is to empower you with knowledge so you can make the best financial decision.
Still unsure what’s best for you? Speak with a Lendly expert today and discover how we simplify your home loan process.