# Registered MOTD vs Simple Mortgage: What’s the Difference in a Home Loan? (Telangana 2026) Source: https://hyderabadhomeloans.com/2026/10/29/motd-vs-simple-mortgage-home-loan/ · Updated 29 Oct 2026 **Quick answer:** Both give your lender a legal claim on the property. A **registered MOTD** (equitable mortgage) is created by depositing your original title deeds with the lender, and the memorandum recording it is registered at the sub-registrar office. A **simple mortgage** is a mortgage deed in which you keep possession; the law requires it to be registered. In Telangana an MOTD costs at most ₹60,000; a simple mortgage deed costs 0.6% of the loan, with no cap. *By Vijay Arjun V (B.Pharm, PGDM), authorised LIC HFL DSA since 2002 and DME (Direct Marketing Executive) appointed by LIC HFL. Telangana charges checked on the Registration Department’s ready reckoner on 29 October 2026.* ## Three kinds of mortgage, in plain words | Type | How it is created | Registration | Used for home loans? | | --- | --- | --- | --- | | Mortgage by deposit of title deeds (MOTD / MODT, equitable mortgage), Section 58(f) | You hand the original title deeds to the lender, intending them as security | No deed is needed to create it, but the memorandum is often registered, and Telangana charges stamp duty on it | Yes, the most common | | Simple mortgage, Section 58(b) | You sign a mortgage deed and personally agree to repay; you keep possession | Compulsory: Section 59 requires a registered deed | Yes, by some lenders | | Mortgage with possession | The lender takes possession of the property | Registered deed | No | ## What each one costs in Telangana From the Telangana Registration Department’s ready reckoner: | Instrument | Stamp duty | Registration fee | | --- | --- | --- | | Deposit of title deeds (MOTD) | 0.5%, maximum ₹50,000 | 0.1%, maximum ₹10,000 | | Mortgage without possession (simple mortgage) | 0.5%, no cap | 0.1%, no cap | | Mortgage with possession (outside gram panchayats) | 2% + 1.5% transfer duty | 0.1% | What that means on your loan (our calculation): | Loan | Registered MOTD | Simple mortgage deed | | --- | --- | --- | | ₹25 lakh | ₹15,000 | ₹15,000 | | ₹50 lakh | ₹30,000 | ₹30,000 | | ₹1 Cr | ₹60,000 | ₹60,000 | | ₹1.50 Cr | ₹60,000 | ₹90,000 | | ₹2 Cr | ₹60,000 | ₹1,20,000 | Up to ₹1 crore the cost is the same. Above it, the MOTD is capped at ₹60,000 while a simple mortgage deed keeps rising. More on MOTD charges: [what MOTD means](https://hyderabadhomeloans.com/2024/07/25/what-is-motd/) and [MODT charges in Telangana](https://hyderabadhomeloans.com/2026/10/24/modt-charges-in-telangana-home-loan/). ## Registered MOTD vs simple mortgage: side by side | | Registered MOTD | Simple mortgage | | --- | --- | --- | | What you sign | A memorandum recording the deposit of your deeds | A mortgage deed | | Original deeds | Held by the lender | Usually held by the lender as well | | Visit to the sub-registrar | Yes, to register the memorandum | Yes, to register the deed | | Shows on the encumbrance certificate | Yes | Yes | | When the loan is closed | Lender returns the deeds; release recorded so the EC is clean | Lender returns the deeds; release recorded so the EC is clean | | When you move the loan | Old mortgage released; the new lender creates its own | Old mortgage released; the new lender creates its own | ## Which one will your lender use? The lender decides, and it should tell you before you sign. Many banks register an MOTD at the sub-registrar office for every home loan in Telangana. LIC HFL describes the security on its loans as an “equitable / registered mortgage” of the property. Your sanction letter and the Key Fact Statement list every charge you pay, including any stamp duty and registration for the mortgage, so ask for them before you accept the loan. We tell you upfront what your LIC HFL loan’s mortgage paperwork will involve. A note on the rules: in September 2024 the National Housing Bank told housing finance companies to follow the Stamp Act, the Registration Act and state rules when creating mortgages, after states reported equitable mortgages not being registered or stamped as required. ## Moving your loan? Count the mortgage cost twice In a balance transfer, the old lender releases its mortgage and the new lender creates a fresh one, so mortgage charges are paid again. On a ₹50 lakh loan in Telangana that is about ₹30,000. Include it before deciding: [balance transfer calculator](https://hyderabadhomeloans.com/home-loan-balance-transfer-calculator/) and [closing an LIC HFL loan](https://hyderabadhomeloans.com/2026/10/11/lic-hfl-home-loan-foreclosure/). [Ask us about mortgage charges](https://wa.me/918886249998?text=Hi%2C%20I%20want%20to%20know%20the%20mortgage%20charges%20on%20my%20home%20loan.%20Loan%20amount%20and%20lender%3A%20) ## How LIC HFL creates its mortgage in Hyderabad In our experience as an authorised LIC HFL DSA, LIC HFL takes a **simple mortgage by deposit of title deeds**, not a registered MOTD. The stamp duty is about **0.5% of the loan**. It is paid online by e-challan, and the documents are stamped (franked) at the sub-registrar office (SRO). Your DSA helps with the challan and the SRO step. The Telangana schedule caps this duty, so check the current cap and the exact amount in your sanction letter. - **Less paperwork at closure.** There is no registered mortgage deed to cancel, so closing the loan and getting your title deeds back is usually simpler. - **Fewer visits.** You do not book a registration slot at the SRO for a full mortgage registration. - **Lower cost to compare.** Ask every lender for the mortgage charge in writing before you choose. Practice differs between lenders and can change, so treat the sanction letter and Key Facts Statement as the final word. ## Frequently asked questions ### Are MOTD and MODT the same? Yes. Both mean Memorandum of Deposit of Title Deeds; MOTD is how most people spell it. ### Is an unregistered deposit of title deeds valid? Depositing title deeds with the intention of creating security creates a mortgage under Section 58(f) without a registered deed. But if the written memorandum itself sets out the terms, it must be registered, and in Telangana the deposit attracts stamp duty either way. Lenders follow their own legal advice and the National Housing Bank’s 2024 instructions. ### Can I choose between an MOTD and a simple mortgage? Usually not; the lender chooses the form of security. You can compare the total charges of different lenders before you apply. ### Is MOTD stamp duty tax-deductible? The deduction for stamp duty and registration covers the purchase of the house, not the mortgage document. Ask your tax adviser. ### How do I check that the mortgage was released after closing my loan? Download a fresh encumbrance certificate and check that the mortgage entry shows a release. See [how to get an EC online in Telangana](https://hyderabadhomeloans.com/2026/10/17/encumbrance-certificate-telangana-home-loan/). More: [LIC HFL home loans in Hyderabad](https://hyderabadhomeloans.com/home-loan-in-hyderabad/) · [home loan charges compared](https://hyderabadhomeloans.com/2026/10/29/home-loan-hidden-charges-insurance-motd-lic-hfl/). *Sources: Transfer of Property Act, 1882, Sections 58 and 59; Telangana Registration & Stamps Department, ready reckoner (registration.telangana.gov.in), checked 29 October 2026; National Housing Bank circular NHB/HO/DOS/DAK/2024/03451/2024-25, 13 September 2024; lichousing.com loan pages (security). Charges on loan amounts are our calculations.* *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.* --- Hyderabad Home Loans — authorised DSA of LIC Housing Finance Ltd since 2002. Free eligibility check: https://hyderabadhomeloans.com/. Phone / WhatsApp +91-8886249998.