SBI home loan - MODT

[vikas5432]

Recently took SBI home loan. SBI agent has asked us that an additional MODT payment is required.

Agent has asked for 5000 as processing fee(actually br***). As per him this needs to be paid in registrar office.

Can anyone please guide on this ? I obviously want to avoid this fees. This is my first home loan so don’t have much knowledge. Is this a normal practice ?

P.S - This is in Bangalore .

 

[Zacobite]

Recently took SBI home loan. SBI agent has asked us that an additional MODT payment is required.

Agent has asked for 5000 as processing fee(actually br***). As per him this needs to be paid in registrar office.

Can anyone please guide on this ? I obviously want to avoid this fees. This is my first home loan so don’t have much knowledge. Is this a normal practice ?

P.S - This is in Bangalore .

* *Long detail post **- MODT is a new practice started by many state RERA. MODT (Memorandum of Deposit of Title Deed) is a declaration that the borrower has deposited the title deeds to secure the loan.

Through a MODT deed, a borrower gives a printed undertaking. It states that they have deposited their property’s title document with the lender out of their free will. The title document deposit takes place in exchange for a loan.

A borrower must register the MODT deed at the state sub-registrar’s office. There is a nominal stamp duty of 0.10% to 0.20% of the total home loan amount, depending on which state you reside in. Some states are charging more.. However, there is a caveat. The MODT deed’s stamp duty cannot exceed Rs. 25,000 regardless of the total loan amount.Again may be varying as per state.

Earlier, the MODT undertaking was not mandatory in all states, but with recent regulations, almost all financial institutions ask for this document when disbursing the final loan instalment. Lenders make this document mandatory in the paperwork checklist as this acts as proof that they have the right to recover debts if a borrower keeps defaulting on their EMIs.

This is normal nowadays. You shd get a receipt for the fee paid!! I did it too when i got an HL...

 

[vikas5432]

* *Long detail post **- MODT is a new practice started by many state RERA. MODT (Memorandum of Deposit of Title Deed) is a declaration that the borrower has deposited the title deeds to secure the loan.

Through a MODT deed, a borrower gives a printed undertaking. It states that they have deposited their property’s title document with the lender out of their free will. The title document deposit takes place in exchange for a loan.

A borrower must register the MODT deed at the state sub-registrar’s office. There is a nominal stamp duty of 0.10% to 0.20% of the total home loan amount, depending on which state you reside in. However, there is a caveat. The MODT deed’s stamp duty cannot exceed Rs. 25,000 regardless of the total loan amount.

Earlier, the MODT undertaking was not mandatory in all states, but with recent regulations, almost all financial institutions ask for this document when disbursing the final loan instalment. Lenders make this document mandatory in the paperwork checklist as this acts as proof that they have the right to recover debts if a borrower keeps defaulting on their EMIs.

This is normal nowadays. You shd get a receipt for the fee paid!! I did it too when i got an HL...

MODT is 0.6% of home loan now in Karnataka .
My main query is the 5k processing/bribe fee .. Is that a normal practice ?

 

[Zacobite]

MODT is 0.6% of home loan now in Karnataka .
My main query is the 5k processing/bribe fee .. Is that a normal practice ?

not that i am aware of.. why do we need to for a normal transaction!!

 

[vikas5432]

not that i am aware if.. why do we need to fir a normal transaction!!

not that i am aware if.. why do we need to fir a normal transaction!!

I didn’t got what you meant.

 

[MrMonkey]

MODT is 0.6% of home loan now in Karnataka .
My main query is the 5k processing/bribe fee .. Is that a normal practice ?

Negotiate with him, maybe he might reduce it if that's his fee. Otherwise no choice left

 

[vikas5432]

Negotiate with him, maybe he might reduce it if that's his fee. Otherwise no choice left

I have tried it repeatedly. He is fixed on 5k.

 

[Zacobite]

I have tried it repeatedly. He is fixed on 5k.

good luck with SBI.. i didn't pay anything additional