Category: Home Loan

Aug 27
Home loan and tax benefits if you own multiple homes

Indian law allows a person to own multiple homes. However, for all the properties taken together, the amount of home loan available to you will depend on various factors. You are entitled to certain tax benefits for buying, building, renovating, or repairing a house property. This is with respect to the interest paid on borrowed money. The tax laws also allow you to claim tax benefits for repaying the principal amount for the purchase and construction of a residential house. Tax benefit on interest payment Under section 24(b), you may claim…

Aug 24
Impact of corona virus on the real estate business in India.

Impact of corona virus has been hazardous. China was widely COVID positive in December 2019, India was positive by March 2020. That is when the Prime minister announced nationwide lockdown. However, the lockdown was an effective decision without a doubt, if we consider the aspect of the health of the people, but it affected numerous businesses, jobs, etc. Covid-19 has a serious impact on the real estate business. This crisis is the third, in real estate post Demonetization and Real estate act, 2016. Aspects of real estate affected due to the…

Aug 24
Home loan interest rates and EMI in banks – August 2020

When you take a home loan for your dream home, you end up paying an interest and the loan amount. The interest is calculated by an interest rate charged on the loan amount. You repay the loan amount and interest in equal monthly installments. Home loan interest rates can be floating and fixed depending on the banks. They are charged according to the loan amount. EMI depends on the following factors:- Higher the loan amount, higher is the EMI. Lower the home loan interest rates, lower the EMI The maximum tenure…

Aug 19
Home loan and tax benefits if you own multiple homes

As the law allows a person to own multiple homes and avail of multiple home loans, we look at the implications on tax exemptions on the home loan for the second house There is no restriction on the number of properties you can own. Similarly, there is no restriction on the number of houses for which you can take home loans and claim tax benefits, either under the tax laws or banking laws. However, the amount of home loan available to you for all the properties taken together, shall depend on various factors…

Aug 13
Can A Home Loan Turn Into A Bad Debt?

Times have changed and not many of us can afford the luxury of a debt-free life, something our parents and grandparents enjoyed. There is also a shift in the way people looked at borrowing. Unlike our elders, we do not perceive debts as harmful. Not only do loans save us in our time of need, but they also help us save on taxes. Experts are also of the opinion that debts should be part of one’s financial planning, and this planning should be done in a way that the borrower makes the…