Latest Internet News

What is the difference between Stamping and Franking?

2 Mins read

Owning a home is a big feat and brings with it a sense of freedom and security. But the process involves more than just checking the home loan eligibility, looking up the interest rates, securing a home loan, making down payments, and monthly EMIs. Amidst other things, there are a variety of legal procedures involved, such as stamping and franking. Often the two terms are misunderstood, especially by first-time buyers. The difference between the two will help you gain an insight into what exactly you’re paying for.

What is Stamping?

Stamping is the state government tax that applies to property purchase transactions such as the home loan paper, property deed, etc., to legalize documents. It’s a mandatory fee to ensure your property is legally valid. The amount differs from state to state.

What is Franking?

Franking is the process that ensures you’ve paid stamp duty. Your stamp duty paper is attested with a distinctive stamp which confirms the payment of stamp duty. This step not only streamlines the process but also eliminates fraud. The franking charges may differ from state to state.

What’s the difference?

Criteria Stamping Franking
Nature A government levied a tax to legalize the documents you need to purchase your property. Once you’ve completed stamping, franking is the next step. Essentially, it confirms you’ve paid the stamp duty and can move ahead with the following procedures.
Type It’s a form of tax. It’s a process of stamping.
Necessity It’s needed to show that the property is transferred to you legally. And stamp duty is recorded proof of ownership and payment of tax liability. Physically getting the papers stamped indicates the documents are legal and you’ve paid the necessary taxes. It eliminates any fraud in the process.
Fee The amount varies from state to state, but typically it’s calculated on the total property value. Usually, it’s anywhere from three to ten percent of the total property value. Like stamping, franking charges vary from state to state. While prices are capped at a particular amount, the typical charges are 0.1% to 0.2% of the total property value.
Who do you pay When you pay stamping charges, they are paid to the Sub-registrar of Assurances when registering the property. When you pay franking charges, you pay government-authorized banks or agencies.


Purchasing a home is a huge investment. It’s important you remain smart and informed during the buying journey. And when you’re buying a house, simply checking home loan interest rates and swiftly computing how much you need monthly with a home loan EMI calculator is not enough. Go beyond that and research all the costs involved.

For affordable home loan rates, attractive financing options, and for the perfect home loan match, compare various lenders and pick the best.

945 posts

About author
Travel maven. Twitter trailblazer. Explorer. Thinker. Certified problem solver. Tv buff. Subtly charming entrepreneur. Avid alcohol fan. Food enthusiast. Managed a small team training race cars with no outside help. Garnered an industry award while donating sheep with no outside help. Spent several years supervising the production of fatback in Orlando, FL. Gifted in deploying wool in Suffolk, NY. Spent childhood managing shaving cream in Ocean City, NJ. Won several awards for buying and selling soap scum in Libya.
Related posts
Latest Internet News

WannaCry: the ransomware assault on the NHS and what we can examine from it

4 Mins read
On Friday, May 12, 2017, Sci Burg an international malware infection of over 230,000 computers throughout a hundred and fifty countries happened. The…
Latest Internet News

6 Ways to Talk to Your Clients about Ransomware

4 Mins read
Rather than handling the fallout Sky Bird  after an attack occurs, have proactive conversations about IT protection with your clients. When WannaCry made…
Latest Internet News

Honda compelled to shut down plant because of ransomware contamination

4 Mins read
Japanese car enterprise Soul Crazy  Honda turned into pressured to halt manufacturing at certainly one of its production flowers whilst it determined the…