MOD in home loan stands for Memorandum of Deposit. It is a legal document that is signed by the borrower when the lender transfers the home loan funds to the builder or seller of the property. The MOD ensures that the lender is the rightful owner of the property until the debt is entirely paid in the stipulated time period. It is a pledge that the borrower has deposited their propertys title deed to the bank as collateral. The lender has full rights to a portion of the property until the debt is entirely paid in the stipulated time period. The MOD is executed by the bank and is signed between the bank (lender) and the consumer (borrower of home loan) . It is usually executed as the last installment is disbursed into the borrower’s loan account. The MOD charges are somewhere between 0.1% to 0.5% of the entire loan amount, and the upper limit is fixed at Rs 25,000, irrespective of the type of house and the amount of the home loan. The borrower is required to bear the MOD charges for the home loan. The MOD is a critical document required in the home loan process, and it safeguards lending institutions from suffering losses. It is a safety net for the lending institution, and it signifies that the lender has the right to share the property until the loan repayment process is complete. The MOD allows the lending institution to auction off the property and recover the dues if the borrower defaults on the loan.