The franking charges for personal loan are fees paid for the process of stamping loan agreements, particularly when taking a secured or high-value personal loan. This process legally validates the loan document and makes it admissible in court, if ever required. Let me share with you more details on this charge.
What is Franking in Loan?
Franking is done by authorised banks or agents on behalf of the state government. The process involves stamping the agreement using a franking machine, which certifies that the correct stamp duty has been paid.
This helps in preventing fraud and ensuring the loan agreement complies with legal requirements.
Franking charges are essentially a part of the stamp duty, which varies across Indian states. These charges typically range from 0.1% to 0.2% of the loan amount or the value of the agreement.
For example, if you take a Rs10 lakh personal loan and the franking charge is 0.2%, you would pay Rs2,000 as franking fee. Some states have a fixed fee instead of a percentage.
I hope you understand what are franking charges on personal loan.
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What is Franking Charges in Maharashtra?
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What are Franking Charges on Personal Loan?
priya
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10 months
2025-05-01T10:45:11+00:00 2025-05-01T10:45:11+00:00Comment
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