| |
| Q |
How much
housing loan can one get ? |
|
A |
Housing loan
will be sanctioned depending upon your repayment capacity and
according to your income. Your spouse's income can be included, if
you want to increase the amount of your loan. The maximum loan that
can be sanctioned varies with housing finance companies and ranges
from Rs.10 lakh to Rs.1 crore.
Back To Top
|
|
| |
| Q |
What are
the tax benefits that are available if one avails of housing loan
? |
|
A |
Tax benefits
are available on both the principal and interest components of the
loan as per the income tax act. The upper limit of the amount of
deduction of interest repayment allowed from your gross total income
is now Rs. 75,000 p.a.. Besides, Sec. 88 offers you tax benefits for
principal repayments. The principal repayment amount included in the
overall limit of Rs 60,000 offered by this section is Rs 10,000.
Back To Top
|
|
| |
| Q |
What is
reducing balance ? |
|
A |
Reducing
balance is the method of reducing the principal amount already paid,
from the outstanding loan amount. Every time you make a payment,you
pay interest on that part of the original principal sum that has
remained un-repaid till then.
Back To Top
|
|
| |
| Q |
Which
loan is cheaper the monthly reducing balance or the annual reducing
balance ? |
|
A |
The best way
is to compare the EMIs and the tenures of the two home loans. The
loan carrying the lower EMI for the same tenure is the cheaper
option.
Back To Top
|
|
| |
| Q |
What is a
fixed rate home loan ? |
|
A |
A fixed rate
home loan, is a loan where the interest rate is constant over the
entire tenure of the loan tenure.
Back To Top
|
|
| |
| Q |
What is a
floating interest rate ? |
|
A |
A floating
interest rate loan, is a loan where the interest rate payable is
linked to the market rate like the bank lending rate. As the bank
rate varies, the interest rate payable by you will also rise and
fall. Hence you will have to bear the risk of interest rate
fluctuations, the floating interest rates offered are slightly lower
than the fixed interest rates.
Back To Top
|
|
| |
| Q |
What is a
home Extension Loan ? |
|
A |
A home
extension loan is a loan which helps you to meet the expenses of any
alteration like extension/expansion or modification of your home.
You can avail of a home extension loan, after obtaining the
requisite approvals from the municipal corporation.
Back To Top
|
|
| |
| Q |
What is
home Improvement Loan ? |
|
A |
A home
improvement loan is one that is made available for you to do certain
external work like structural repairs, waterproofing or internal
work like tiling and flooring, plumbing, electrical work, painting,
etc. |
|
|
