Stamp Duty on a Loan Agreement in India: What You Pay by State (2026)

A loan agreement, and documents linked to it such as a promissory note or a security document, attract stamp duty in India. The amount is not fixed nationally. It depends on the state, the loan amount and the kind of document, and secured loans are often treated differently from a simple loan agreement. This guide explains how stamp duty on a loan agreement is worked out, why it varies, how secured loans differ, and how to pay it correctly. This is general information, not legal advice. Stamp duty rates, denominations and rules can change, and they depend on the state and the document, so confirm the current position on the official state channel or with a local professional before you pay. ## Why there is no single figure Stamp duty is largely a state subject in India. Each state sets its own rates under the Indian Stamp Act as amended for that state, or under its own stamp law. A loan agreement, a promissory note, a hypothecation or pledge document and a mortgage are charged under different entries in that state's schedule. Because every state writes its own schedule, the duty on the same loan document can differ a lot depending on where it is executed. <!-- [VERIFY] do not insert state-wise percentages, caps or rupee figures for loan agreement or security document stamp duty without confirming each on the current state schedule; the shape and the figures differ by state and by document and change --> ## How the duty is usually worked out For loan documents, the duty generally takes one of these shapes, depending on the state and the document: - Ad valorem, meaning a percentage of the loan amount or the secured amount.

• Ad valorem up to a cap, so the percentage applies until the duty reaches a ceiling fixed by the state. Several states cap the duty on loan and security documents.
• A fixed amount for a simple loan agreement in some states. To find your figure you need the state where the document is executed, the loan or secured amount, and the exact type of document. With those, check the current rate, and any cap, for that document in that state. Because these figures change and vary widely, this guide does not quote state rates. ## Unsecured loan agreement versus secured documents It helps to separate the plain loan agreement from the security around it. A simple loan agreement records the loan and the terms of repayment. A secured loan adds a document that creates security over an asset, such as a hypothecation of goods, a pledge, or a mortgage of property. These security documents are usually charged under their own entries, and a mortgage in particular can carry a higher, value-based duty. If your loan is secured, work out the duty for each document, not just the loan agreement, because more than one may be chargeable. ## How to pay the stamp duty Most states now deliver this through an e-stamp. In general terms the flow is: 1. Identify the exact documents, the loan or secured amount, and the state of execution.

2. Find the current duty, and any cap, for each document in that state.
3. Buy the e-stamp for that amount through the SHCIL e-stamp channel or an Authorised Collection Centre such as a listed bank, choosing the state and the purpose.
4. Execute the agreement on or with the e-stamp certificate, have both parties sign, and keep the certificate with its unique number.
5. If a security document needs registration, for example a mortgage over property, complete that with the registration department. If you are unsure of the duty, a lender, a chartered accountant or a listed Authorised Collection Centre can confirm the current figure for your state and amount before you pay. ## Common mistakes to avoid The most common mistake is stamping only the loan agreement and ignoring a security document that also attracts duty. Another is assuming the duty is a flat small amount, when for a secured loan it may be value-based up to a cap. A third is under-stamping to save money. An under-stamped loan document can be impounded when produced before a court or an authority, which matters most when you are trying to enforce repayment, and you then pay the shortfall plus a penalty that can be several times the original duty. Stamp every chargeable document correctly at the start. ## Keeping a stamped agreement alive after you sign it Stamping is only the beginning. A loan has a repayment schedule, interest resets, security that must be released on repayment, and sometimes covenants to monitor, and those obligations run for the life of the loan. The full journey, from drafting the clauses, to reviewing them for risk, to e-signing and e-stamping, to tracking repayment and release dates, can sit in one workspace rather than scattered folders and reminders. Adira is an AI legal operating system built on Claude that holds that draft, review, e-sign and e-stamp, and track cycle in one place tuned to how your company contracts, with public per-seat pricing and a short free trial. You can see how it works at the product site. A single pane showing the health of every contract is on its roadmap. E-stamp coverage depends on the state, so confirm what is supported during the trial. For a single loan agreement, the steps above are all you need. The workspace idea becomes useful once you manage many loan documents and their dates at once.