Other charges on car loan are: Interest rate, preclosure fee, part-prepayment charge, late payment fee, swap charges, stamp duty, and service charges among others. Service charges and interest rate are levied with GST on car loans.
Subsequently, can franking be done instead of stamp paper?
Of course not! You can stamp your paper using franking, e-stamping or you can buy stamped papers or stamp papers. Stamp papers are documents that have been franked or gone through the franking process. The stamp duty that you need to pay will be the cost of the paper.
Considering this, can I repay car loan early?
Car Loan Prepayment Penalty
The car loan foreclosure penalty amount depends on the principal outstanding, interest outstanding and also at what point of the tenure the loan is being paid off. … Prepayments can be done in parts and pre-closure means foreclosure of the entire loan before end of the tenure.
Can we use a 100 RS stamp in a money agreement?
Agreements made on white paper are valid. so an agreement made on 100 rupees stamp paper can surely be valid if it fulfills all other conditions under the law and as per the law. But, if the agreement requires to be stamped and registered then it cannot be used as an evidence of proof before a Court of law.
According to accounting and finance terminology, the finance charge is the total fees that you pay to borrow the money in question. This means that the finance charge includes the interest and other fees that you pay in addition to paying back the loan.
The stamp duty is 0.5% of the amount secured by the deed if the loan is repayable on demand or more than three months for the date of the instrument evidencing the agreement.
It is advised to customers that they restrict their car loans to not more than 20 percent of their monthly income. For example, if you make Rs. 40,000 per month, your monthly car loan EMI should not exceed Rs. 8,000.
The stamp duty rate ranges from 2% to 12% of the purchase price, depending upon the value of the property bought, the purchase date and whether you are a multiple home owner. Anyone purchasing an ‘additional’ residential property will be charged a 3% surcharge on each of the threshold bands.
Franking charges are to be paid to the authority for stamping your paper. The charges are usually 0.1% of the total purchase. In other words, franking charge is a fee that has to be paid to the bank or agency, for stamping the property papers that serve as a legal proof of payment of stamp duty.
The term MOD means Memorandum of deposit of title deed or popularly also known as Mortgage deed of your property. This deed is usually executed when the bank releases money to the vendor from the loan account of its customer in installments or at the time of registration of the property.
Amount of the charge
Stamp duty is calculated on the total cost of property or home. It varies from 3%–10%, depending on the state slab as well as the location and status of the property, your age and gender, and type of property.
Franking, is a process of actually getting the documents stamped. This process includes getting the documents marked or stamped, indicating that the documents are legal and the stamp duty levied on the documents has been paid.
In short, its objective is to determine everything is true and genuine on the document. Stamp duty is a legal tax payable in full and acts as an evidence for any financial transaction such as sale or purchase of a property. Stamp paper must be purchased in the state where the document is executed.
|Description of Charges*||Charges Amount|
|Registration Certificate Collection Charges||₹ 550 + GST|
|Prepayment Charges||5% on principal outstanding or interest outstanding for unexpired period of loan (whichever is lower)|