Everyone has a dream to build a home like Palace, but can’t everyone fulfill their dream. But now many financial companies, banks granted a loan for mainly build your dream home. A home loan is a financing solution that you can able to buy a home with comfort. Here, the plot, flat or other property that you simply are purchasing is collateral. However, you’ll also choose this loan to renovate, repair or construct a home. This makes taking home equity credit an economical decision. Now we shall pay some attention to the following things before lending home loan in India:
Is this loan tax deductible?
Yes, a home loan is eligible for a tax deduction. Home loan tax benefits include Section 80C’s deduction of Rs. 1.5 lakh on the principal repayment and Section 24B’s deduction of Rs.2 lakh on the interest repayment. You can also claim home loan tax right off for registration fees and stamp duty charges under Section 80C.
Can I get a 100% home loan?
As per RBI instructions, no lender is allowed to offer 100% home financing. You need to form a deposit amounting to 10-20% of the property’s price. Often, you can access up to 80% housing loan financing for your property.
How to apply for a Home Loan?
Home loan applications generally follow a process such as:
- Application: You will need to apply for a home loan; this can be done online or at bank branches/loan centers.
- Loan Sanction: Post submission of your application and review of necessary KYC and documents of financial stability, the bank shall sanction your loan amount.
- Review: Once the loan is sanctioned, you will need to submit the documents pertaining to the property against which your loan is sought, for technical and legal review.
- Approval & Disbursal: Upon validation of your loan amount and the property sought, the bank shall approve and disburse your loan.
- With the right documents and prompt follow-up, you could have your Axis Bank Home Loan Approved in 15 days!
What are the factors to decide home loan eligibility in India?
There are multiple factors to determine home loan eligibility, including but not restricted to:
- The Income of all applicants
- Age of the primary applicant
- Number of dependents that the applicants support
- Assets and liabilities of the applicants
- Stability and continuity of the primary applicant’s occupation
What is the fixed rate and floating rate of Home Loan in India?
The rate of interest associated with fixed-rate loans remains constant during the entire tenure of the loan. On the other hand, the interest rates relevant to floating-rate loans can be adjusted from time to time depending on the RBI key policy rates. The equated monthly installments can increase or decrease depending on the prevailing RBI rates in the case floating rate type loans.
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Can I repay my outstanding loan amount?
Yes, you can choose to prepay your outstanding loan amount either partially or in full before the completion of your loan tenure.
Which is the Best Home Loan available in India?
Basis the various requirements for housing loans and varied customer profiles, the kinds of home loans available in India are –
- Home construction loan
- Loan for plot/land purchase
- Home loan balance transfer
- Top-up loan
- Joint home loan
- Loans under the Pradhan Mantri Awas Yojana scheme
- Home loan for –
- Government Employees
- Bank Employees
- Private Employees
Basic things are described; you can visit the branch for essential information. Hope this will help you. Stay tuned with BLOGS ROCKS.