MOD Charges for Home Loan 2026: Fees, Bank Comparison

The Memorandum of Deposit (MOD) is a financially significant component of home loan processing in 2026. MOD creation charges across major Indian lenders typically fall in the ₹4,000–₹7,000 range, excluding state-specific stamp duty and registration costs. For a standard ₹50 lakh home loan, borrowers should realistically budget ₹18,000–₹30,000 towards total MOD-related expenses, depending on state laws and lender practices. These charges rarely feature in headline interest rate comparisons, yet they materially affect upfront cash outflow. Unlike processing fees which banks often waive during festive or promotional campaigns MOD charges are statutory or quasi-statutory in nature and largely non-negotiable. Costs vary based on property location, stamp duty slabs, and documentation complexity rather than borrower profile alone. This article explains the complete MOD cost structure for 2026, compares charges across major banks, outlines state-wise stamp duty treatment, and walks through the registration process. Whether you are a first-time homebuyer or evaluating a balance transfer, understanding MOD charges helps prevent last-minute financial shocks at disbursement.

Understanding MOD Charges for Home Loan

MOD charges, formally known as Memorandum of Deposit of Title Deed charges, are a core part of home loan documentation in India. When a lender sanctions a home loan, it requires collateral security to safeguard its financial exposure. This security is created by depositing the original property title documents with the bank, thereby establishing an equitable mortgage without executing a registered mortgage deed. This mechanism is legally recognised under Section 58(f) of the Transfer of Property Act, 1882, read with applicable provisions of the Indian Registration Act, 1908. MOD allows lenders to create a valid mortgage through document deposit supported by a written memorandum, avoiding the complexity and higher costs of registered mortgage deeds. MOD charges are levied at or immediately after loan disbursement and remain effective until the loan is fully repaid and the mortgage is formally released. These charges are distinct from other loan-related expenses:

• Processing fees cover loan appraisal and sanction activities
• Property stamp duty applies to ownership transfer
• MOD charges secure the lender’s interest through mortgage creation

Processing fees commonly range between 0.25% and 1% of the loan amount in 2026, while MOD-related stamp duty is significantly lower, generally capped by state legislation and calculated on the loan amount rather than property value. Understanding this distinction is essential for accurate cost estimation.

MOD Charges Breakdown for Home Loans in 2026

Borrowers should budget ₹20,000–₹35,000 for complete MOD-related expenses in 2026.

Variations arise primarily due to state stamp duty ceilings and registration rules, not lender discretion alone. States such as Maharashtra, Karnataka, and Tamil Nadu typically impose higher MOD stamp duties, while Gujarat and Madhya Pradesh remain comparatively lower-cost jurisdictions. To control costs, compare lender fee schedules before sanction, request a written breakup, and verify state-specific MOD stamp duty rates through the respective state registration department portals.

MOD Charges for Home Loan: Bank-Wise Comparison 2026

Comparing MOD charges across banks is essential because, unlike interest rates, MOD costs are driven by state law + lender execution method, not marketing offers. While the legal purpose of MOD is identical across lenders, banks differ in how they recover administrative costs, whether they charge flat fees or facilitate state-mandated stamp duty, and whether any concessions are extended to specific borrower categories. Public sector banks generally follow state-notified stamp duty frameworks with minimal add-ons, while private banks often levy fixed administrative MOD facilitation fees in addition to statutory charges. Understanding this distinction prevents misleading cost comparisons. Bank-Wise MOD Charge Structure (Indicative – 2026)

Percentages apply to state stamp duty, not bank fees.

Factors Influencing MOD Charges on Home Loans

MOD charges are not standardized across the Indian banking system. While the legal foundation of MOD is uniform, the total payable amount varies due to state law, lender facilitation practices, and borrower-specific factors. Understanding these determinants enables borrowers to budget accurately and avoid last-minute disbursement delays. Loan Amount Higher loan amounts attract higher MOD stamp duty, as stamp duty is calculated as a percentage of the loan amount, subject to state-specific statutory caps. For example, in states like Maharashtra, stamp duty increases with loan value until the prescribed ceiling is reached. The increase is statutory, not bank-driven. Property Location Property location is one of the largest cost drivers. MOD stamp duty is governed by state stamp acts, and each state follows a different structure. Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Telangana all apply distinct MOD duty frameworks, which directly impact the total payable amount irrespective of the lender. Bank Policies Banks do not decide MOD stamp duty rates. Their role is limited to:

• Facilitating deposit of title deeds
• Coordinating registration (where applicable)
• Charging an administrative / facilitation fee

In 2026, this facilitation fee typically falls within a mid four-figure range, varying by lender and customer segment. Differences between SBI, HDFC Bank, and Kotak Mahindra Bank reflect administrative cost recovery, not legal duty variation. Negotiation Possibilities Negotiation applies only to the bank’s facilitation fee, never to stamp duty. Private sector banks may waive or reduce facilitation charges for:

• High-value loan profiles
• Strong income stability
• Existing premium relationships

Public sector banks generally follow fixed schedules with limited discretion. Loan Tenure Loan tenure does not alter MOD charges. MOD is created once at loan inception and remains valid until loan closure. Extended tenures do not increase MOD stamp duty or registration costs. Any previous implication of tenure-linked cost escalation was inaccurate. Credit Score Borrowers with strong credit profiles often receive fee concessions, particularly on facilitation charges. In 2026, such benefits are commonly extended during promotional periods by private banks, though stamp duty remains unaffected. Relationship with Bank Existing salary accounts, long-term deposit relationships, or bundled banking products can influence facilitation fee discounts. Some lenders offer partial concessions to retain valuable customers. Special Schemes Government schemes such as PMAY do not eliminate statutory MOD stamp duty. However, banks may independently waive or subsidize their facilitation component for eligible borrowers (e.g., women borrowers or priority segments). Type of Property Commercial properties do not attract arbitrary multipliers set by banks. Any higher cost arises from state-specific stamp duty rules applicable to non-residential properties, not a universal 1.5x–2x bank markup. Borrower Category Women borrowers and government employees may receive bank-level concessions on facilitation charges, especially in public sector banks. These concessions do not override statutory stamp duty obligations. Proactively request a written, itemized MOD cost breakup separating:

• State stamp duty
• Registration fees (if applicable)
• Bank facilitation charges

Compare this across at least three lenders before finalizing your loan. This ensures realistic cost planning and avoids disbursement-stage surprises.

Paying MOD Charges – Step-by-Step Process

Paying MOD charges is a critical milestone that formally creates the mortgage in favor of the lender. Errors in execution can delay disbursement or cause land-record inconsistencies. While banks have digitized much of the workflow in 2026, MOD remains a bank–state coordinated process. Step-by-Step Process Document Preparation Gather the executed loan agreement, sale deed, full chain of title documents, identity proofs, and photographs. Originals are required for title deposit verification. Bank Intimation Notify your bank of readiness to proceed with MOD. This triggers internal coordination with the legal and documentation teams. Charge Calculation The bank calculates:

• State-mandated MOD stamp duty
• Registration fee (if applicable in your state)
• Bank facilitation fee
• CERSAI registration charges

Stamp duty is determined strictly by state law, not bank discretion. Payment Method Selection Choose between online payment (where state portals permit) or offline payment via branch coordination. Some states still require physical stamp paper or treasury challans. Payment Execution Complete payment through the prescribed channel and retain proof. Online references or challan acknowledgments are mandatory for registration. Document Submission Submit payment proof and documents to the bank’s legal cell. Obtain a dated acknowledgment. Bank Verification The bank verifies title documents, confirms payment, and prepares the MOD memorandum. This internal step usually completes within a few working days in 2026. Registration / Recording Depending on state law:

• MOD may be registered, or
• Title deed deposit may be recorded without registration

Biometric authentication and identity verification are mandatory in most states. Acknowledgment & Record Update Once completed, the lender confirms mortgage creation. The MOD reflects in land or encumbrance records as applicable. Document Retention The bank retains custody of title deeds until loan closure. Borrowers should retain copies of all MOD-related acknowledgments. The MOD process generally completes within two to three weeks in efficient jurisdictions, subject to state registration capacity. Always verify completion through official state land-record portals

MOD Charges vs. Other Home Loan Costs

When securing a home loan in India, borrowers often focus almost entirely on the interest rate and EMI calculations. However, several additional statutory and lender-imposed costs materially increase the total financial outlay. MOD charges, while essential for creating a legally enforceable mortgage, represent only one component among multiple mandatory expenses associated with property financing. Understanding how MOD charges compare with other costs—such as processing fees, stamp duty, registration charges, legal fees, and insurance—helps borrowers budget accurately and avoid last-minute financial surprises at the disbursement stage. In 2026, MOD charges generally fall in the range of 0.1% to 0.2% of the sanctioned loan amount, depending on state stamp duty laws and lender documentation practices. While meaningful, these costs are significantly lower than expenses such as property stamp duty, which typically accounts for 5% to 7% of the property value across most Indian states. The following table provides a 2026-aligned comparative breakdown of major home loan–related expenses, highlighting their relative magnitude, payment structure, and statutory versus discretionary nature:

From a cost-impact perspective, MOD charges remain one of the smaller but unavoidable

expenses in the home loan lifecycle. For a typical ₹50 lakh home loan on a ₹75 lakh property, MOD-related costs of approximately ₹10,000 to ₹25,000 are materially lower than stamp duty and registration obligations, which together often exceed ₹4–6 lakh. Borrowers should prioritize budgeting for stamp duty and registration, which typically require 6% to 8% of property value upfront. Processing fees can often be negotiated or waived, especially for salaried borrowers with strong credit profiles. In contrast, MOD charges are largely non-negotiable, as they arise from statutory stamp duty requirements and mortgage registration norms.

Using a MOD Charges Calculator: Benefits and Limitations

A MOD charges calculator is an online tool designed to help prospective home loan borrowers estimate the overall cost involved in creating a mortgage deed before approaching a bank. These calculators aggregate multiple fee components—including stamp duty, registration charges, legal fees, and CERSAI registration—to provide a consolidated cost projection. By inputting variables such as loan value, property location, and state of registration, borrowers can gauge their expected financial outlay and plan accordingly. These calculators operate on standardized algorithms and may not capture bank-specific variations, promotional waivers, or recent regulatory changes. While they serve as useful budgeting instruments, the estimates generated should always be cross-verified with the actual fee structure disclosed by the chosen lending institution. Below is a representative breakdown of the typical components included in a comprehensive MOD charges calculator for the current regulatory environment:

The primary advantage of using these calculators lies in their ability to reduce uncertainty

during the loan disbursement process. Borrowers can compare indicative costs across different states and adjust their property planning accordingly. The limitations are significant: state stamp duty rules change periodically, banks may bundle MOD charges with other fees, and individual negotiations can alter the final payable amount. Borrowers should always request a written fee schedule from their bank and confirm the calculator’s assumptions against official disclosures before finalizing their home loan budget. MOD Charges for Home Loan – SBI State Bank of India continues to maintain borrower-friendly policies for mortgage creation. As a leading public sector lender, the bank follows a transparent approach to MOD-related charges while aligning with applicable state laws. SBI periodically introduces concessions for select customer segments, subject to internal policy and prevailing regulatory guidelines. Understanding these charges in advance helps borrowers plan their finances and avoid last-minute issues during loan disbursement. Documents Required When Paying MOD Charges for an SBI Home Loan

• Identity Proof: Aadhaar Card, PAN Card, or Voter ID as per KYC requirements
• Address Proof: Utility Bill, Passport, or Bank Statement as residential verification
• Property Documents: Sale Deed, Agreement to Sell, and Property Tax Receipts
• Loan Agreement: Signed home loan agreement issued by SBI
• Payment Proof: Receipt generated through approved SBI payment channels
• Bank Statement: Recent statements to establish financial stability
• KYC Documents: Additional documentation and photographs as per norms
• SBI Account Details: Account information linked to the home loan
• NOC from Builder: Mandatory for under-construction properties
• Any Other Document: Additional paperwork as requested by the branch

Borrowers are advised to obtain a written and itemized fee schedule from their SBI branch prior to loan sanction to ensure full transparency and clarity.

MOD Charges for Home Loan – HDFC

Home loans from HDFC Limited continue to be widely preferred across urban and semi-urban markets. When finalizing a loan, understanding the Memorandum of Deposit charges is essential, as this legal instrument creates the mortgage in favor of the lender. HDFC follows a standardized internal approach for MOD creation across its loan products, while applicable stamp duty and registration charges are governed by state regulations. Unlike lenders that periodically adjust or waive components, HDFC generally maintains consistency in its MOD-related charges, reflecting its structured documentation process. The table below outlines the MOD applicability across HDFC’s home loan offerings:

The final payable amount depends primarily on state-specific stamp duty and registration

requirements. Borrowers should consult an HDFC branch or official representative to obtain an accurate, written breakdown of charges applicable to their specific property and loan type. Frequently Asked Questions Q1. What are MOD charges for a home loan in 2026? You pay MOD (Memorandum of Deposit) charges to create and register your mortgage deed with the bank. In the current regulatory environment, banks such as SBI, HDFC, and ICICI levy a base MOD creation charge as part of the mortgage process. In addition to the bank’s base charge, you also pay stamp duty and registration charges as prescribed by the respective state government. These statutory charges are calculated as a percentage of the loan or property value and vary depending on the state where the property is registered.

Q2. Which bank has the lowest MOD charges for home loans in 2026?

MOD charges differ across lenders based on internal policies and operational costs. Public sector banks generally offer lower base MOD charges compared to private banks. When evaluating affordability, you should compare not only the bank’s base MOD charge but also the applicable stamp duty and registration costs in your state, as these form a significant portion of the total expense.

Q3. Are MOD charges refundable if my home loan is rejected?

Stamp duty and registration charges paid to the government are non-refundable once processed. However, the bank’s base MOD creation charge may be partially refundable if the loan is rejected before mortgage registration. Banks typically deduct administrative or processing-related expenses and refund the balance, subject to their internal policies and the stage at which the loan is cancelled.

Q4. How do I calculate total MOD charges for my home loan?

You can estimate total MOD charges by using a MOD charges calculator. These tools require inputs such as property value, loan amount, and state of registration. Your total MOD cost generally includes the bank’s base MOD charge, applicable stamp duty, registration fees, CERSAI registration, legal verification charges, and property valuation costs. The final payable amount depends on state laws and the lender’s fee structure. Q5. Do MOD charges differ for NRI home loans at HDFC in 2026? MOD charges for NRI home loans may be higher than those for resident home loans due to additional documentation and compliance requirements. Apart from the base MOD charge, NRI borrowers pay the same statutory charges, including stamp duty, registration fees, and CERSAI registration, as applicable under state law. The total MOD cost varies based on property location and prevailing regulations.