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Sukesh M R   10 May 2022

Is stamp duty payment necessary for loan agreement?


Is it mandatory to write a loan document between lender and borrower on a stamp paper or just a plain paper agreement is sufficient?



 2 Replies

Shivam Solanki 0035 Sec_A   12 May 2022

It is mandatory to write a loan document between lender and borrower on a stamp paper as it stands as a proof as well as it provides a sense of security between both the parties from the fear of losing money and proper payment. Getting paper stamped allows a document to be recognized in the court of law provided it is not an unlawful agreement.


A loan sanction letters/sanction orders are where borrower’s give their acceptance which also constitutes a valid contract. Thus , this legally binds both the parties along with the interest rate , principal amount, duration etc.


Different states have different stamp duty , as I reside in Jharkhand I can provide you their duty charges.


For loan agreement stamp – 50rs

Declaration stamp – 10rs

Power of Attorney- 10rs

Sukesh M R   12 May 2022

Dear Shivam, Thanks for responding! It is quite informative!!

My question was related to the new apps and P2P Lending platforms where the agreement between the parties involved is just a click of a button saying 'I Accept' / 'I Confirm' etc

Are such confirmations (electronic, without stamp duty) considered equally valid in the eyes of law and protected?


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