Franking Charges on Home Loan

Posted in Housing Articles By Sajhyadri Chattopadhyay-
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Discovering your dream home in India is thrilling, but have you thought about the financial side? Amidst the excitement of exploring localities and interiors, one crucial aspect often overlooked is Franking Charges. Ever wondered what could happen if you miss considering them? It's time to delve into the nitty-gritty of this essential element to ensure a seamless home buying experience. Let's demystify this aspect of home buying. 

Meaning of Franking Charges

When purchasing a property, in addition to paying stamp duty for legality, there's an extra – the franking charge. Once your property documents are set, the next crucial step is ‘Franking’, which confirms that you have paid the stamp duty. It's that extra layer that ensures your property transaction is not just legal but seamlessly validated. Avoid confusion between this essential step and the broader concept of stamp duty and get the clarity you need for a smooth housing finance journey. 

Benefits of Franking

  • Cost-Efficient: 

Choosing franked mail over traditional stamps saves you money. It's a wallet-friendly option for all your postal needs.

  • Convenience: 

Say goodbye to those unnecessary trips to the post office. Franking allows you to prep your mail effortlessly, right from your space. 

  • Efficiency: 

Experience clean and consistent impressions with franking. This not only looks professional but ensures your mail reaches its destination swiftly. Streamline your postal process with ease! 

Why Choose Franking Over Other Methods

Stamp duty payments can be a mess. Here, franking provides a cleaner and safer alternative. No more non-judicial stamp papers and scams. It simplifies the process, ensuring your property dealings are straightforward and secure. Franking charges are the modern, hassle-free way to handle stamp duty, making property transactions in India smoother and more reliable. 

Stamp Duty vs. Franking Charges

Understanding these distinct roles is essential for a seamless property transaction in India. Stay informed to ensure that your property’s journey is a smooth sailing one. 

  • Stamp duty secures property document legality, while franking charge certifies tax payment. 

  • Stamp duty is your government tax; franking charges go to the bank or agency. 

  • Stamp duty is for legality, while franking is for tax. Together, they ensure that your property dealings are crystal clear. 

Crucial Factors about Franking Charges for Home Loan

  • Pay Attention to Official Directives:

    Banks factor in stamp duty, registration, and other charges when calculating your loan eligibility. Stay informed about the generic processes set by the central bank and any changes made therein to ensure a smooth lending process. 

  • Know that Rules aren't Universal:

    Despite the underlying process and expenses following a set groundwork, each state, bank, and agency might have distinct regulations. Be proactive in verifying the specifics about franking charges with your lender. 

Simple Tips to Understand Home Loan Franking Charges

  • Keep it Straightforward: 

Type your documents on plain paper. No need for fancy details—keep it simple and clear. 

  • Trust the Bank: 

Choose authorized banks or agencies for a hassle-free franking process. They're your reliable partners in this journey.

  • Time is Crucial: 

Banks have specific hours for franking. Stay ahead—ensure they are the authorized ones. Simplify your steps, get those documents stamped, and confidently own your property without stress. 

Calculating Franking Charges

Figuring out franking charges is a breeze – typically 0.1% of your property's value. Consider this example: If your property's worth is ₹50 Lakhs, your Franking fee will be just ₹5,000. This simple calculation ensures transparency in your property journey. No hidden surprises – just clarity on what you're paying. So, when diving into the numbers, remember, it's all about the 0.1%. Now, go ahead, confidently navigate those figures, and make informed decisions for a seamless property experience. 

Key Insights on Franking Charges for Home Loans

  • Regulatory Framework (2015): 

In 2015, the Reserve Bank of India (RBI) issued a directive mandating the inclusion of stamp duty, registration fees, and other document-related charges while calculating loan eligibility for properties valued up to ₹10 Lakhs. 

  • Diverse Practices Across Entities: 

The realm of franking charges exhibits diversity. Different banks, authorized entities, and franking agencies may adopt distinct rules and procedures. This variation extends not only across states but also among different banks or even different agents within the same state. 

  • Varied Operational Parameters: 

Banks operate within defined parameters for franking services, often constrained by a limited franking quota. It's essential for borrowers to be cognizant of these operational limitations. Additionally, banks usually offer franking services only during specific hours of a working day. 

  • Authorization Verification: 

The authenticity of the franking service provider is paramount. Borrowers should verify whether the bank or agency offering franking services is duly authorized. This step ensures that the franking process aligns with regulatory standards and offers a sense of security to the individuals involved. 


In essence, franking is the indispensable legal endorsement for your property documents, ensuring efficiency and cost-effectiveness. This vital step is pivotal for a seamless home-buying journey in India, providing legitimacy. Remember, your diligence ensures you navigate the diverse rules seamlessly. For a seamless process with 100% transparency about all charges and fees involved, choose your home loan on Bajaj Markets! Gather necessary funds of up to ₹15 Crores from various lenders, all on one platform! 

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