What are the important facts about home loans that people should know?

There are some conceptions regarding the housing finance in people’s minds which should be cleared. Before approaching taking loans for buying properties buyers should know about certain facts about housing finance which will help them to gain information and aware of them from making mistakes further. The housing finances help the borrower by lending loans which will help them to make the dreams come true.

What is the amount that the borrower can get from the bank as a loan?

The bank or the lender can provide 90% of the property value as a loan amount. But the lender will verify the repayment eligibility and other factors before approving the loan.

Can tax benefits earned from family members for loans?

According to the Income-tax Act of Section 24, a borrower can ask for tax benefits from the family members or friends if the loan amount is taken from them. Though, the borrower cannot ask for deduction in loan principal amount under section 80C and even cannot ask for benefits on payments of interest.

Can tax benefits claim on stamp duty and registration?

According to section 80C, homebuyers can claim tax benefits on both loan amounts principal repayment and stamp duty including registration charge. But there is a limit of tax benefits which is 1.5Lakh per year.

Cash repayments of loan can be done?

People can repay the loan in cash if it is taken from HFCs and NBFCs and the installments should be less than 2lakhs. Paying cash for loans where the installment is more than 2lakhs is illegal.

What is the importance of having a co-borrower while taking a loan?

While taking loans from the bank, the lender forces borrower for applying loans jointly by discussing certain benefits. This not mandatory for having a co-borrower and there are some disadvantages also. People should choose wisely which will be better for them and what benefits will be sufficient for them.

Not paying the loans on time and defaulting on common scenarios can spoil the credit score. Due to casualness in repayment of loans, people can face certain problems legally also and a huge loss too. People will not be able to pay a loan whenever it is needed due to a bad credit score. Banks never allows taking penalties if borrower pre-paying the home loans. If the interests are on floating rates the bank does not ask for penalties but if it is a fixed rate, the bank allows penalties on pre-payments. The banks also lend interest on the borrower whichthey utilize in other factors on banking. If anyone fails to pay the loans on time and default without reason they may cost very circumstances or loss of properties. There are many banks where women borrowers get concessions and interests are low. It varies in the bank to bank and also depends on the market and government norms. Homebuyers should invest in Upcoming Residential Projects In Kolkata as they can gain benefits on investments and also get the advantages if loans are taken.

Rakesh Misra is a real estate blogger who blogs about Kolkata's realty market and also gives advice on buying residential and commercial apartment or flats in India.