1. How much loan can I avail?
A maximum loan of 80% - 85% of the agreement value can be availed. However, depending on your income eligibility and approved by the bank, your loan amount may differ. All loans are at the sole discretion of the banks.
2. What is the term of the loan that bank offers?
Home Loans are offered for a term ranging between 10 years to 25 years by bank and financial institutions.
3. What are the Basic Documents required for Home Loans?
Documents required for home loan by a salaried person in India are:
Documents required for self-employed persons in India are:
4. What is the procedure for disbursement of home loan?
The bank undertake verification and due diligence of all the required documents submitted by the Applicant, the loan amount will be disbursed by the bank. The disbursement of the loan will be in the favour of the Developer.
Documents required for disbursement:
Some Important Home Loan Facts:
1. Will I get tax benefits on loans?
Yes, under various sections of Income Tax department, you are eligible for tax benefits
2. Do I get deduction on Interest payment?
The repayment of the interest portion of the EMI is allowed as a deduction under section 24 under the head "income from house property" up to Rs. 1,50,000/- for self-occupied property.
3. Do I get deduction on principal?
Under section 80C up to a maximum amount of Rs. 1,50,000/- the repayment of principal amount of the loan can be claimed as a deduction. Under Section 80C towards payment made for stamp duty, registration fee and other expenses for the purpose of transferring the property in the name of the assessed also, one can claim deduction. All these deductions however should not exceed the overall limit of Rs. 1 lakh. However, deduction under Section 80C is not available in respect of payment made towards the cost of any addition, alteration, renovation or repair carried out after the issue of the completion certificate.
4. What is TDS on Property?
A purchaser of an immovable property (other than agricultural land) worth Rs 50 lakh or more is required to pay withholding tax at the rate of 1% of the sales consideration effective 1st June 2013. Buyer of the property is required to deduct the TDS and deposit the same in Government treasury. Purchaser of the property is not required to procure Tax Deduction Account Number (TAN) according to rules in respect of tax deducted at source. The Buyer is required to quote his or her PAN and sellers PAN.