Stamp duty waived on farm loans up to Rs 2 lakh in Maharashtra

Mumbai, Jan 3 (PTI) The Maharashtra government has waived stamp duty on documents related to agricultural and crop loans of up to Rs 2 lakh to reduce the financial burden on farmers and simplify the loan process, Revenue Minister Chandrashekhar Bawankule said on Saturday.

"The decision was taken after it was noticed that farmers were facing an additional financial burden even while availing loans. Chief Minister Devendra Fadnavis has directed that revenue laws and rules be made simpler and more people-friendly, and accordingly, this decision was taken," he said.

The revenue and forest department issued a government gazette notification in this regard on January 1. The waiver has come into effect from that date.

As per the notification, stamp duty will not be levied on legal documents required for loans up to Rs 2 lakh, including title deeds, deposits, mortgage and pledge papers, guarantee letters, mortgage deeds and loan agreements, according to Bawankule.

Earlier, crop loans attracted stamp duty at the rate of 0.3 per cent for every Rs 1 lakh, forcing farmers to pay around Rs 600 as stamp duty for a Rs 2 lakh loan. With the complete waiver, farmers' borrowing costs will be directly reduced, the minister said.

The decision will be applicable across the state and will be binding on all banks, cooperative institutions and lending agencies. With the removal of stamp duty on loan-related documents, the crop loan process is expected to become easier for farmers, he said. PTI ND NSK