What is MODT fee in home loans?
MODT or memorandum of deposit of title deed is applicable in home loans where you deposit the title documents of your property with the bank. Since this memorandum is an undertaking it is registered with the government and a stamp duty towards registration charges is applicable. Usually a charge of 0.1 to 0.2% of the loan amount is charged as MODT charges.
MODT refers to Memorandum of Deposit of Title Deed. You have to make an undertaking that you are submitting your documents to the bank at your own will. A fee is charged for such undertaking. It might cost 0.1% to 0.5% of the total Home Loan that you avail. Check with your bank before you apply for the Home Loan.