Kagaznama

Loan Agreement Against Property

At a glance

Price: Free
Stamp duty: Stamp under whichever article fits the agreement's actual contents (Punjab/Chandigarh) — separate from the mortgage's, title-deed memorandum's or hypothecation's own duty.
Registration: No property interest transferred by itself.
Witnesses: Contractual — s.59's two-witness rule binds the mortgage, not every loan agreement.

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Also called

LAP agreement
property-backed loan agreement
mortgage-backed loan contract

When you need it

Document a loan against property: the credit agreement sets commercial terms; a separate mortgage/security instrument secures it. State facility type, amount, interest structure, tenure, permitted end use, fees, prepayment, default and security form — don't label it a mortgage unless it meets mortgage formalities.

RBI's floating-rate EMI framework requires disclosing benchmark-reset impact and options, with transparent charges — share the Key Fact Statement too. Keeping the two instruments separate lets each carry its own stamp/registration treatment.

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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

Stamp under whichever article fits the agreement's actual contents (Punjab/Chandigarh) — separate from the mortgage's, title-deed memorandum's or hypothecation's own duty. Buy on/before signing (s.17); unclear article, get Collector adjudication (s.31). Under-stamped, it's inadmissible until the deficiency and penalty are paid (s.35).

Registration

No property interest transferred by itself. Register the separate mortgage when s.59/s.17 requires it.

Notarisation

Not required unless the lender has its own attestation process.

Witnesses

Contractual — s.59's two-witness rule binds the mortgage, not every loan agreement.

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Sample preview — placeholder answers, not your data

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LOAN AGREEMENT AGAINST PROPERTY

Agreement date: 1 April 2026

Borrower: Aarav Sharma, Sector 21, Panchkula. Lender: ABC Bank Ltd, Sector 17, Chandigarh. Loan reference: HL-2026-118.

FACILITY

Type: Term loan against property. Principal: ₹90,00,000 (Rupees Ninety Lakh only). Interest: 9.25% per annum; rate type Floating rate linked to identified benchmark. Benchmark/spread: Repo-linked benchmark + 2.75% Term: 120 months. Initial instalment: ₹1,15,000 (Rupees One Lakh Fifteen Thousand only)

END USE

Permitted end use: Business working capital; no speculative or prohibited use..

SECURITY

Property: Plot 118, Sector 66, SAS Nagar, Punjab (Residential house/plot), Plot 118, Sector 66; conveyance deed 2345/2022., in Punjab; value/reference context ₹1,50,00,000 (Rupees One Crore Fifty Lakh only). Security form: Registered simple mortgage.

COSTS AND RATE RESET

Fees/charges: Processing fee as KFS; legal/valuation at actual disclosed amount.. Prepayment: As disclosed in lender KFS/loan terms and applicable RBI directions. Floating-rate reset disclosure: Lender will communicate benchmark reset impact and borrower options as required.

DEFAULT

Events: Non-payment, material misrepresentation, unauthorised disposal/security impairment.. Remedies are exercisable only through the valid security documents and applicable law.

EXECUTION

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

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

______________________________
Signature
Witness 1: Neeraj Khanna
Place: ____________________
Date: 1 April 2026

______________________________
Signature
Witness 2: Simran Kaur
Place: ____________________
Date: 1 April 2026

LEGAL BASIS

In Punjab the holder of a site allotted by a development authority cannot transfer any right in it, a mortgage included, without the authority's previous permission (section 43(7) of the Punjab Regional and Town Planning and Development Act, 1995), and the authority gives that permission only to the allottee on its file. In Chandigarh a leasehold site needs the Estate Officer's permission to mortgage, a notified service under the Right to Service notification of 30 March 2026, and the Estate Office's checklist asks for an affidavit with it, which carries its own stamp duty. A mortgage by deposit of title deeds does not show in a Punjab Non-Encumbrance Certificate, which is why lenders also record the security in the Central Registry of Securitisation Asset Reconstruction and Security Interest of India.

Questions about this document

Does the Loan Agreement Against Property need stamp paper or stamp duty in Punjab and Chandigarh?

Stamp under whichever article fits the agreement's actual contents (Punjab/Chandigarh) — separate from the mortgage's, title-deed memorandum's or hypothecation's own duty.

See the full position on stamp duty, registration and witnesses

Does the Loan Agreement Against Property need registration in Punjab and Chandigarh?

No property interest transferred by itself.

See the full position on stamp duty, registration and witnesses

What does the Loan Agreement Against Property cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Loan Agreement Against Property need witnesses?

Contractual — s.59's two-witness rule binds the mortgage, not every loan agreement.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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