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Applying for a housing loan is a big decision and before you finalize anything, it is important that you clear all your doubts. We bring to you a solution in the form of this blog that jots down the most frequently asked questions that most applicants have in mind.
The maximum duration of a housing loan for salaried individuals is 30 years and that of self-employed individuals is 20 years.
You will be receiving tax exemption in the form of deductions in interest under section 24 and that of principal deduction under section 80C of the Income Tax Act, 1961. If you are a first time buyer, then you will be eligible to get an additional deduction under section 80EE. Joint applicants can avail a total deduction of INR 3,50,000/- on the interest that they are paying. If the borrower is doing so for the second time, then he or she can claim the entire amount of the interest as deduction.
If you are a salaried person with an approximate work experience of more than 2 years, then you are eligible to get a home loan of up to INR 5 crore and if you are self-employed and your business has been running successfully for 3 years then you are eligible to avail the funding of up to INR 5 crore.
A co-applicant is usually a person who has applied for a joint loan with you to supplement your income and help you in becoming more eligible for the home loan a person who owns / jointly owns the property with the main applicant. This person can either be a blood relative or any other family member.
Prepayment of the loan or best said foreclosure of the home loan taken on an early date can be done if you do not want to pay any further EMIs. You can pay the remaining amount of the loan at that point in time all at once. For foreclosure charges please refer to the link. Schedule of Charges
Your minimum salary for availing the home loan from any major NBFC or banking institute would be on an average around INR 15,000 per month.
Certain loan providers permit you to apply for the home loan without filing for the Income Tax Return under certain conditions.
These are probably not the only questions that you might have. So, it is best that you have a thorough discussion with the representative of the lending institute from where you are interested to apply for the loan. Make sure that all your queries are answered before you sign the papers.