Kagaznama

Hypothecation Agreement for Fixtures and Equipment

At a glance

Price: Free
Stamp duty: Punjab: Entry 6, Schedule I-A (2024) covers hypothecation without possession at 0.25% of the loan/debt. Chandigarh: no published rate — ask the Sub-Registrar or get s.31 adjudication.
Registration: Not a s.17 conveyance by itself.
Witnesses: Contractual — doesn't substitute for company/CERSAI filings.

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Also called

equipment hypothecation agreement
fixture security agreement

When you need it

Give a lender security over equipment and fittings installed at a shop, office or factory — machines, air-conditioning, counters and fit-out — while they stay where they are and keep being used. The schedule must accurately identify movables, exclude leased/third-party items, state the facility and cover removal, insurance and enforcement.

Punjab's Entry 6 (2024) covers this at 0.25% of the loan/debt. A company borrower may also need Companies Act charge registration. Permanently attached items aren't automatically movable, and the word doesn't itself hand over possession.

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Punjab: Entry 6, Schedule I-A (2024) covers hypothecation without possession at 0.25% of the loan/debt. Chandigarh: no published rate — ask the Sub-Registrar or get s.31 adjudication. Stamp on/before signing (s.17); under-stamped is inadmissible until the deficiency/penalty are paid (s.35).

Registration

Not a s.17 conveyance by itself. A company borrower may need Companies Act charge registration too, plus CERSAI filing.

Notarisation

Not required for a hypothecation agreement.

Witnesses

Contractual — doesn't substitute for company/CERSAI filings.

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Sample preview — placeholder answers, not your data

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HYPOTHECATION AGREEMENT FOR FIXTURES AND EQUIPMENT

Agreement date: 1 April 2026

Hypothecator/borrower: Aarav Sharma, Sector 21, Panchkula. Lender: ABC Bank Ltd, Sector 17, Chandigarh. Loan: HL-2026-118.

SECURED FACILITY

Facility amount: ₹30,00,000 (Rupees Thirty Lakh only).

ASSETS

Location: Office Unit 804, Sector 66, SAS Nagar, Punjab. Asset schedule: HVAC units, DG set, office fit-out equipment; detailed Schedule A attached.. Aggregate stated value: ₹50,00,000 (Rupees Fifty Lakh only). Ownership/security position: Borrower owns the scheduled movable assets free of undisclosed security.

POSSESSION AND USE

Arrangement: Borrower retains possession and ordinary business use subject to security covenants. The borrower will preserve the scheduled security and keep records sufficient to identify replacements and disposals permitted by the lender.

INSURANCE

Keep material assets insured against normal insurable risks and note lender interest where required.

DEFAULT

On enforceable default lender may take lawful possession/sale steps under security documents and applicable law.

EXECUTION

______________________________
Signature
Hypothecator: Aarav Sharma
Place: ____________________
Date: 1 April 2026

______________________________
Signature
Lender: Authorised Signatory, ABC Bank Ltd
Place: ____________________
Date: 1 April 2026

PERSONAL DATA NOTICE

This notice is given under the Digital Personal Data Protection Act, 2023.

Personal data in this document is collected only to create and administer the stated hypothecation over identified movable fixtures and equipment, communicate about that purpose, verify expressly supplied lending, identity and property information, and retain an evidentiary transaction record.

The record will be held by Kagaznama and may be shared only with the borrower, co-borrower, guarantor, lender, authorised professional, registering or revenue authority, Central Registry/CERSAI-related service, insurer or other person directly involved in the stated credit or security transaction.

If the transaction is withdrawn, refused or cancelled, personal data will be retained for 90 days and then erased. If the transaction proceeds, the record will be retained for the loan/security term plus 12 months, except where a named statutory or regulatory record-retention period requires longer retention.

A person named here may withdraw consent for future consent-based processing, request correction or erasure when the stated purpose has ended, or raise a grievance by writing to privacy@example.com. The record-holder should acknowledge and respond within 30 days.

Data minimisation: this document does not collect full Aadhaar numbers, Aadhaar-card copies, passwords, PINs, OTPs or unrelated bank credentials, and none should be written into it. Use masked account/identity references where an identifying reference is genuinely necessary.

Questions about this document

Does the Hypothecation Agreement for Fixtures and Equipment need stamp paper or stamp duty in Punjab and Chandigarh?

Punjab: Entry 6, Schedule I-A (2024) covers hypothecation without possession at 0.25% of the loan/debt. Chandigarh: no published rate — ask the Sub-Registrar or get s.31 adjudication.

See the full position on stamp duty, registration and witnesses

Does the Hypothecation Agreement for Fixtures and Equipment need registration in Punjab and Chandigarh?

Not a s.17 conveyance by itself.

See the full position on stamp duty, registration and witnesses

What does the Hypothecation Agreement for Fixtures and Equipment cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Hypothecation Agreement for Fixtures and Equipment need witnesses?

Contractual — doesn't substitute for company/CERSAI filings.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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