Do you know the difference between franking and stamping? If not, don’t worry – you’re not alone! Many people are unsure of the difference between these two terms. In this blog post, we will discuss the differences between franking and stamping, and how it is related to your home loan application.
Let’s get started.
An Overview of Franking
Franking is the process of affixing a postage stamp to an item of mail. The term “franking” comes from the Latin word “francus,” meaning free. In other words, when you frank an item of mail, you’re indicating that it doesn’t need to be charged for postage. Franking is typically used for business mail, as it can save businesses a significant amount of money on their postage costs.
Franking Charges on Home Loan
Franking charges are the fees charged by banks for processing your home loan application. They can vary from bank to bank but typically range from Rs.38,000 to Rs.1,59,729. Paying franking charges gives you the peace of mind that your application will be processed smoothly and efficiently.
It also means that you won’t have to pay any additional fees if your application is unsuccessful. In addition, paying franking charges shows that you are serious about your home loan application and willing to pay the fees required to secure it.
An Overview of Stamping
Stamping is affixing a physical stamp to an item to indicate that tax has been paid on that item. This was historically done by hand, but now machines apply most stamps automatically. There are two main types of stamps: adhesive and non-adhesive. Adhesive stamps are glued or affixed to an item, while non-adhesive stamps are printed on the item itself. To use a stamp, you first need to purchase one from the post office or a stationery store. Once you have your stamp, you can affix it to your document in the space provided. Ensure the document is correctly positioned so the stamp impression will be clear.
Stamping Charges on Home Loan
When you apply for a home loan, the lender will charge you a fee to cover the cost of stamp duty. This is a one-time charge that is paid at settlement. In India, the stamping charges on home loans is 0.25% of the total loan amount. Most importantly, for home loan eligibility you will need to meet the lender’s criteria. This includes having a good credit history and a steady income.
The Difference between Franking and Stamping
Franking is the term used when referring to the mark that indicates payment of postage, while a stamp is simply an adhesive label that bears a postal value. In other words, a franked item has been paid for in advance, while a stamped item requires additional payment.
There are several advantages to franking over stamping. First, it can save money since businesses receive discounts for volume mailing. Second, it speeds up delivery since franked items do not need to be weighed or have stamps affixed at the time of mailing. Finally, it provides a more professional appearance since stamped envelopes often look messy and unprofessional.
If you’re unsure whether to use stamps or franking for your next mail out, contact your local post office or mail service provider for more information.
The Bottom Line
The main difference between the two is that with franking, you can get discounts on your postage, whereas, with stamping, you pay the full price for stamps.