Steps to do the same:
1. Provide documents supporting your crisis situation to the bank instead of just a verbal clarification as proof always convince banks better than verbal accounts.
2. Provide an estimated time-line to the bank you may face the crisis:
a) In case of short term crisis period, the banks usually agree to work through a mutually agreed deferred repayment option.
b) In case it turns out to a long term crisis situation, it is advicable to sell off your house rather than pilling up your burden of the house loan and then passing on it to your children or family members.
3. Use your savings at this time to keep yourself afloat while on the other hand also find an alternate solution to your crisis problem.
Thursday, February 14, 2008
Thursday, January 10, 2008
Home Loan Queries Answered
Q - Can a home loan be taken from relatives. Are there any complications in that? How about tax benefits? What all paper work is required? Is the interest obtained by lender taxable?
A - There are no complications on taking a home loan from your relatives. Tax deduction benefits will be available on the interest paid under section 24. However, there would be no tax deduction benefits available for capital repaid to your relative under section 80 C.
Q - Can I take a housing loan jointly with my brother? Is an exemption in income tax for principal amount and interest on said loan paid, available?
A - You can of course take a home loan with your brother. You can get exemption for the home loan in the ratio of your respective shares in the loan.Tax deduction benefits will be available under section 24 (interest paid on the loan) and under section 80 C (for the principal repaid).
Q - What is the difference between home loan for an approved colony and a regularsied colony? Do financial institutions grant loans for both the types of colonies? If yes, please explain the requirements in detail.
A - Banks cannot provide home loans if the construction is unauthorized. If the construction is considered legal (whether originally approved or later regularized); then, getting a home loan could be possible, depending on the terms and conditions.
Q - Could we get tax implication on 100% loan disbursement for an under-construction building which would take 2-3 years for completion?
A - You can get tax deduction benefits only from the financial year in which the construction is completed.
Q - What is the 'Pre-EMI' interest and when is it applicable?
A - When the loan disbursement is done in stages, based on the construction of the property, the bank charges the interest till the last such disbursement is made. This is called Pre-EMI interest.
Q - Do banks provide home loan on total value of property inclusive of stamp duty charges?
A - Typically, banks provide 85% of the total cost of the house as finance. This amount includes charges like registration charges and stamp duty.
Q - What is the rate of interest of all banks for loan against property?
A - The broad range of interest rates for a loan against property will be 12%-14%.
Q - Can we take loan on property (land) for construction purpose?
A - Yes, you can definitely get a loan to buy property to construct a house. However, not all banks will be ready to fund such loans.
Q - Why are loans get rejected without giving proper reason? Is this country ruled by banks law where no communication done while approving loan. Also, once you stop the EMI payments, the banks come home with goondas. This shows how they communicate and talk rational while rejecting loan.
A - Register a complaint on the bank's official website. If you do not receive a response/satisfactory response to your query within 2-3 weeks, approach the Banking Ombudsman. Details are available on www.rbi.org.in .
A - There are no complications on taking a home loan from your relatives. Tax deduction benefits will be available on the interest paid under section 24. However, there would be no tax deduction benefits available for capital repaid to your relative under section 80 C.
Q - Can I take a housing loan jointly with my brother? Is an exemption in income tax for principal amount and interest on said loan paid, available?
A - You can of course take a home loan with your brother. You can get exemption for the home loan in the ratio of your respective shares in the loan.Tax deduction benefits will be available under section 24 (interest paid on the loan) and under section 80 C (for the principal repaid).
Q - What is the difference between home loan for an approved colony and a regularsied colony? Do financial institutions grant loans for both the types of colonies? If yes, please explain the requirements in detail.
A - Banks cannot provide home loans if the construction is unauthorized. If the construction is considered legal (whether originally approved or later regularized); then, getting a home loan could be possible, depending on the terms and conditions.
Q - Could we get tax implication on 100% loan disbursement for an under-construction building which would take 2-3 years for completion?
A - You can get tax deduction benefits only from the financial year in which the construction is completed.
Q - What is the 'Pre-EMI' interest and when is it applicable?
A - When the loan disbursement is done in stages, based on the construction of the property, the bank charges the interest till the last such disbursement is made. This is called Pre-EMI interest.
Q - Do banks provide home loan on total value of property inclusive of stamp duty charges?
A - Typically, banks provide 85% of the total cost of the house as finance. This amount includes charges like registration charges and stamp duty.
Q - What is the rate of interest of all banks for loan against property?
A - The broad range of interest rates for a loan against property will be 12%-14%.
Q - Can we take loan on property (land) for construction purpose?
A - Yes, you can definitely get a loan to buy property to construct a house. However, not all banks will be ready to fund such loans.
Q - Why are loans get rejected without giving proper reason? Is this country ruled by banks law where no communication done while approving loan. Also, once you stop the EMI payments, the banks come home with goondas. This shows how they communicate and talk rational while rejecting loan.
A - Register a complaint on the bank's official website. If you do not receive a response/satisfactory response to your query within 2-3 weeks, approach the Banking Ombudsman. Details are available on www.rbi.org.in .
Friday, January 4, 2008
Some more Q/A on Home Loan
Q - Already repaying a housing loan. Can you take one more housing loan. With this would there be any tax benefit?
A - You can claim income tax deduction benefits from both the housing loans. To get a detailed response and an answer to similar queries, click on the link below:
http://www.apnaloan.com/index.php?option=com_content&task=vie w&id=125&Itemid=2&limit=1&limitstart=3 (Please refer to question number 3 (a).)
Q - I have purchased a flat in Pune in 1995 & taken loan from HDFC for 15 year tenure.I am paying EMI & availing Tax Rebate. I have purchased another flat in Mumbai & taken a loan from HDFC & paying PRE-EMI to HDFC. Wheather I will be able to avail Income Tax Exemption on both the houses against EMI & PRE-EMI.
A - You can claim tax exemptions for both, the EMI and the pre-EMI. For a detailed response on claiming tax deduction benefits on EMI; and an answer to a similar query, click on the link below:
http://www.apnaloan.com/index.php?option=com_content&task=vie w&id=125&Itemid=2&limit=1&limitstart=3 (Please refer to question number 3 (a).)
With regards to claiming tax deduction benefits on Pre-EMI, click on the link below:
http://www.apnaloan.com/index.php?option=com_content&task=vie w&id=125&Itemid=2&limit=1&limitstart=5 (Please refer to question number 7 (a).)
Also to calculate your EMIs you can avail the benefit of the following calculators:
http://www.apnaloan.com/loan-advice-india/calculator.html
A - You can claim income tax deduction benefits from both the housing loans. To get a detailed response and an answer to similar queries, click on the link below:
http://www.apnaloan.com/index.php?option=com_content&task=vie w&id=125&Itemid=2&limit=1&limitstart=3 (Please refer to question number 3 (a).)
Q - I have purchased a flat in Pune in 1995 & taken loan from HDFC for 15 year tenure.I am paying EMI & availing Tax Rebate. I have purchased another flat in Mumbai & taken a loan from HDFC & paying PRE-EMI to HDFC. Wheather I will be able to avail Income Tax Exemption on both the houses against EMI & PRE-EMI.
A - You can claim tax exemptions for both, the EMI and the pre-EMI. For a detailed response on claiming tax deduction benefits on EMI; and an answer to a similar query, click on the link below:
http://www.apnaloan.com/index.php?option=com_content&task=vie w&id=125&Itemid=2&limit=1&limitstart=3 (Please refer to question number 3 (a).)
With regards to claiming tax deduction benefits on Pre-EMI, click on the link below:
http://www.apnaloan.com/index.php?option=com_content&task=vie w&id=125&Itemid=2&limit=1&limitstart=5 (Please refer to question number 7 (a).)
Also to calculate your EMIs you can avail the benefit of the following calculators:
http://www.apnaloan.com/loan-advice-india/calculator.html
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