Bhopal: Big Relief for Small Entrepreneurs – Govt Plans to Waive Stamp Duty on Loans up to ₹10 Lakh Bhopal – The Madhya Pradesh government is taking a significant step to promote entrepreneurship and self-employment. Under this initiative, the state and central government’s loan schemes may soon offer exemptions on stamp duty and agreement charges for loans up to ₹10 lakh. Following the instructions of Chief Secretary Anurag Jain, the Registration and Stamps Department is working on a framework for this initiative. Typically, stamp duty collected by banks goes into the state treasury. For example, when a borrower mortgages property for a loan, they have to pay 0.25% as a fee. In total, there are four different charges applicable to loans, which together amount to approximately 1% of the loan amount.
How Much Will Borrowers Save? If this exemption is approved, borrowers could save up to ₹10,000 on a ₹10 lakh loan. Officials argue that since most beneficiaries of government loan schemes like MUDRA are unemployed youth and small entrepreneurs, they should be given this relief. Proposal Under Consideration This proposal was discussed in the State-Level Bankers’ Committee (SLBC) meeting, where officials suggested removing these charges. After this, the Chief Secretary directed the concerned departments to look into the feasibility of the exemption. Some states, including Uttar Pradesh, have already implemented similar waivers, and Madhya Pradesh may soon follow suit.
