M'shtra to cut stamp duty on loans by 15 basis points

The state government has agreed to reduce the stamp duty on loans by 15 basis points from 25 basis points on demand of banks and financial institutions. One basis point is one-hundredth of a percentage point.

The state finance minister is expected to announce the cut in his budget speech.

The state government had imposed 0.25 per cent duty on loans last year.

The Indian Bank Association (IBA), a premier bankers' body, had strongly opposed the move.

They pointed out that Maharashtra's share in banking advances is more than 25 per cent, and if such a duty is imposed then corporates would prefer other states for loan transactions and Maharashtra would lose revenues.

The state has also agreed to cap the loan size to Rs 5 lakh for the calculation of the stamp duty, said a senior government ofifcial.