17 years ago
What is the time required for loan disbursement?
On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of all relevant procedures, including proof that 15% of the cost has been paid upfront to the seller of the property.
Can I make joint applications for home loans?
Most institutions are willing to consider the joint incomes of the applicants for deciding the loan amount. Some institutions do not require the co-applicants to be co-owners of the property to be purchased.
What are the tax benefits of home loans?
Both principal as well as interest of home loans attract tax benefits. With effect from 1st April 2005 (i.e. assessment year 2005-07) under section 80C of the Income Tax Act 1965:
Principal amount of repayment of loan along with other savings such as PF, PPF, Life Insurance premium etc up to a maximum of Rs 1,00,000/- will be eligible for deduction from gross income.
Interest paid on loan after completion of construction will be deductible from income from property
For self occupied - Income will be treated as nil and interest payment will be treated as minus income which will be adjusted against other income.
For rental property - It will be adjusted against rental income.
Principal amount of repayment of loan along with other savings such as PF, PPF, Life Insurance premium etc up to a maximum of Rs 1,00,000/- will be eligible for deduction from gross income.
Interest paid on loan after completion of construction will be deductible from income from property
For self occupied - Income will be treated as nil and interest payment will be treated as minus income which will be adjusted against other income.
For rental property - It will be adjusted against rental income.
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