# MODT Charges in Telangana (2026): Stamp Duty, Meaning & Cancellation Process

Source: https://hyderabadhomeloans.com/2026/10/24/modt-charges-in-telangana-home-loan/ · Updated 29 Oct 2026

**Quick answer:** In Telangana, **MODT** (Memorandum of Deposit of Title Deeds) charges are **0.5% stamp duty** (maximum ₹50,000) plus a **0.1% registration fee** (maximum ₹10,000) on the loan amount, paid when the memorandum is registered at the Sub-Registrar Office. So it is about 0.6% of the loan up to ₹1 crore, and never more than ₹60,000. Once the loan is repaid, the release is recorded so the encumbrance certificate (EC) is clean.

*By Vijay Arjun V (B.Pharm, PGDM), authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Charges checked on the Telangana Registration Department’s ready reckoner on 29 October 2026.*

MODT charges are separate from the stamp duty and registration on your sale deed (7.5% of the property value in Telangana). They are for the mortgage that secures your loan, and you pay them only when your lender registers one.

## What is the full form of MODT in banking?

**MODT** stands for **Memorandum of Deposit of Title Deeds**, also written MOTD or MOD. Under Section 58(f) of the Transfer of Property Act, depositing your original title deeds with a lender as security creates an equitable mortgage. The memorandum is the written record of that deposit: which documents, for which loan, on what date. When it is registered, the lender’s charge appears on the property’s encumbrance certificate.

## MODT vs MOTD: is there any difference?

No. They are two spellings of the same document. MODT is the formal abbreviation; MOTD is how most people search for it. A different thing is a **simple mortgage**, a registered mortgage deed; see [MOTD vs simple mortgage](https://hyderabadhomeloans.com/2026/10/29/motd-vs-simple-mortgage-home-loan/).

## Telangana MODT stamp duty and registration fee (2026)

From the Telangana Registration Department’s ready reckoner: deposit of title deeds attracts stamp duty of 0.5% (maximum ₹50,000) and a registration fee of 0.1% (maximum ₹10,000).

| Home loan amount | Stamp duty (0.5%, max ₹50,000) | Registration fee (0.1%, max ₹10,000) | Total MODT |
| --- | --- | --- | --- |
| **₹25 lakh** | ₹12,500 | ₹2,500 | **₹15,000** |
| **₹40 lakh** | ₹20,000 | ₹4,000 | **₹24,000** |
| **₹50 lakh** | ₹25,000 | ₹5,000 | **₹30,000** |
| **₹75 lakh** | ₹37,500 | ₹7,500 | **₹45,000** |
| **₹1 Cr** | ₹50,000 | ₹10,000 | **₹60,000** |
| **₹1.50 Cr** | ₹50,000 | ₹10,000 | **₹60,000** |

*The charges are worked out on the loan amount secured, not on the property’s market value. Our calculation.*

## Is MODT needed for every home loan in Telangana?

It depends on the lender and the form of mortgage it takes. Many banks register an MODT at the Sub-Registrar Office for every home loan. LIC HFL describes the security on its loans as an “equitable / registered mortgage” of the property. The lender decides, and your sanction letter and Key Fact Statement show the mortgage charges you will pay, so check them before you accept the loan. The National Housing Bank told housing finance companies in September 2024 to follow the Stamp Act, the Registration Act and state rules when creating mortgages.

## How MODT registration works in Hyderabad

1. **Drafting:** the lender’s advocate prepares the memorandum with the property schedule, the loan account and the list of original documents deposited.
2. **Paying the duty:** stamp duty and the registration fee are paid through the Telangana Registration Department’s e-challan facility.
3. **Slot and execution:** you (and any co-borrowers) and the lender’s representative attend the Sub-Registrar Office with jurisdiction over the property; biometrics and photographs are taken.
4. **Registered copy:** the registered memorandum goes into your loan file with the original deeds.

## How to cancel MODT after paying off your loan

When the loan is closed, the lender returns your original documents and records the release of its mortgage, usually through a release or receipt deed registered at the same Sub-Registrar Office. If this step is skipped, the EC keeps showing an active mortgage, which slows any future sale or loan.

1. Collect the loan closure letter and your original documents; see [LIC HFL foreclosure and closure procedure](https://hyderabadhomeloans.com/2026/10/11/lic-hfl-home-loan-foreclosure/).
2. Make sure the release deed is registered by the lender’s authorised signatory.
3. A few days later, download a fresh [encumbrance certificate](https://hyderabadhomeloans.com/2026/10/17/encumbrance-certificate-telangana-home-loan/) and check that the mortgage shows as released.

## Frequently asked questions

### Who pays the MODT charges?

The borrower, because the mortgage secures the borrower’s loan.

### Can MODT charges be claimed under the home loan tax deduction?

The deduction for stamp duty and registration covers buying the house, not the mortgage document. Check with your tax adviser.

### Can MODT be registered at any Sub-Registrar Office?

It is registered at the Sub-Registrar Office with jurisdiction over the property.

### What is the maximum MODT charge in Telangana?

₹60,000: ₹50,000 stamp duty plus ₹10,000 registration fee, reached at a loan of ₹1 crore.

### Is MODT paid again in a balance transfer?

Where the new lender registers its own mortgage, yes. The old lender releases its mortgage and the new one is created, so include the cost in your savings calculation: [balance transfer calculator](https://hyderabadhomeloans.com/home-loan-balance-transfer-calculator/).

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More: [what is MOTD in home loans](https://hyderabadhomeloans.com/2024/07/25/what-is-motd/) · [stamp duty and registration charges for a flat in Telangana](https://hyderabadhomeloans.com/2026/10/24/stamp-duty-and-registration-charges-in-telangana-for-flat/).

*Sources: Telangana Registration & Stamps Department, ready reckoner (registration.telangana.gov.in), checked 29 October 2026; Transfer of Property Act, 1882, Section 58(f); National Housing Bank circular of 13 September 2024; lichousing.com loan pages (security).*

*Hyderabad Home Loans is run by Elite Financial Services, an authorised Direct Selling Agent (DSA) of LIC Housing Finance Ltd. We are not LIC HFL. Loans are sanctioned solely at LIC HFL’s discretion; rates and fees may change.*

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