When you invest in a house, in addition to the cost of the house, you have to pay stamp duty and registration fee. In case you avail a home loan for the same, the stamp duty and registration charges can be included in the loan amount, provided the value of the property is up to Rs.10 lakh.
Stamp duty is paid so that the property is transferred in the buyer’s name and the property’s documents are registered. Stamp duty varies from state to state and registration cost is typically 1% of the value of the property. Stamp duty is usually in the range of 4-10% of the value of the property. It is preferable if you avoid taking a loan for stamp duty and registration fees.