Kagaznama

Second Charge Creation Letter

At a glance

Price: Free
Stamp duty: Stamp per its actual legal effect (Punjab/Chandigarh) — no mortgage duty is satisfied unless it itself creates security.
Registration: Doesn't replace the mortgage instrument itself; register under ss.17/59 if needed, plus CERSAI filing.
Witnesses: None here; the mortgage deed carries its own witness rules.

Free

Documents are free. Only kits are paid.

Free: up to 5 documents a day.

Guided questions, full draft on screen, download in Word.

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Also called

second mortgage creation letter
subordinate charge request

When you need it

For when a property carries a first mortgage and a second-ranking security is being created — not unencumbered, since existing security documents may bar further charges and the first lender's NOC is usually essential first. States the first lender, existing charge, outstanding, consent reference and ranking — this letter alone doesn't create a valid mortgage (s.59 needs a registered deed; a deposit needs s.58(f)), and CERSAI filing must follow.

A ranking/control letter, not a shortcut around the first lender.

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.

Fill this one in

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 per its actual legal effect (Punjab/Chandigarh) — no mortgage duty is satisfied unless it itself creates security. Buy the stamp by signing (s.17); if unclear which article applies, adjudicate (s.31). Unstamped instruments are inadmissible until duty+penalty are paid (s.35).

Registration

Doesn't replace the mortgage instrument itself; register under ss.17/59 if needed, plus CERSAI filing.

Notarisation

Not required for this letter itself.

Witnesses

None here; the mortgage deed carries its own witness rules.

Request Stamp Paper

Sample preview — placeholder answers, not your data

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SECOND CHARGE CREATION LETTER

Date: 1 April 2026

Borrower/security provider: Aarav Sharma, Sector 21, Panchkula. Proposed second-charge lender: ABC Bank Ltd, Sector 17, Chandigarh. Loan: HL-2026-118.

PROPERTY

Property: Plot 118, Sector 66, SAS Nagar, Punjab (Residential house/plot), Plot 118, Sector 66; conveyance deed 2345/2022., Punjab. Second facility amount: ₹90,00,000 (Rupees Ninety Lakh only).

EXISTING FIRST CHARGE

First lender: First Bank Ltd. Reference: Mortgage 118/2024; CERSAI 22AA118. Outstanding: ₹50,00,000 (Rupees Fifty Lakh only).

CONSENT AND RANKING

Basis: First lender NOC/consent obtained. Consent/NOC: NOC dated 10 September 2026 Ranking: Second and subordinate to the identified first charge.

SECOND SECURITY

Obligations: Loan against property facility HL-2026-118 and agreed interest/charges.. Filing/security process: Underlying second-charge mortgage/security instrument will be registered/filed as required.

No second charge is represented as effective before the consent/ranking conditions and legally required mortgage/security formalities are completed.

SIGNATURE

______________________________
Signature
Borrower/security provider: Aarav Sharma
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.

PERSONAL DATA NOTICE

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

Personal data in this document is collected only to document the consent, ranking and implementation of the proposed second property charge, 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.

Questions about this document

Does the Second Charge Creation Letter need stamp paper or stamp duty in Punjab and Chandigarh?

Stamp per its actual legal effect (Punjab/Chandigarh) — no mortgage duty is satisfied unless it itself creates security.

See the full position on stamp duty, registration and witnesses

Does the Second Charge Creation Letter need registration in Punjab and Chandigarh?

Doesn't replace the mortgage instrument itself; register under ss.17/59 if needed, plus CERSAI filing.

See the full position on stamp duty, registration and witnesses

What does the Second Charge Creation Letter cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Second Charge Creation Letter need witnesses?

None here; the mortgage deed carries its own witness rules.

See the full position on stamp duty, registration and witnesses

Often needed with this document

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