Housing Loan | Home Loan | Housing Loan Eligibility

Housing Loan

Housing Loan

Everyone’s house may be a dream. It provides financial security, relief in tax, emergency network and living consistent with your choice.

If you are doing not have the cash to shop for a house, then banks or non-banking finance companies (NBFCs) offer you long-term loans. By paying a hard and fast amount to the bank or NBFC as a monthly instalment, you come back the principal amount and interest of the loan over a period of 10, 20 or 30 years.

The eligibility for taking a home equity credit is decided as follows:

  • A person can get a loan of 60 times his total monthly income.
  • If you’ve got taken another loan (car or consumer loan etc.) which is current, then the lending bank will consider the quantity of the house loan after deducting its monthly instalment from your income.
  • If you would like to require a home equity credit and your credit score isn’t correct otherwise you have defaulted within the payment of any previous loan/loan, the bank can refuse to offer the loan.
  • You can fix your eligibility by taking a loan for an extended period.
  • If you’re a salaried employee otherwise you are a personal business person, then the eligibility of loan is different for both.

What is the reason behind to take a home loan or housing loan?
By taking home equity credit, you really have three facilities.

  • Buying property in terms of investment
  • Savings in income tax
  • Living comfort

If you purchase your house by taking a home equity credit, then the worth of your house keeps increasing over time. It’s actually a kind of investment also. However, the pace of property prices can vary counting on the connectivity of the world, demand-supply situation and income of the people living there.

The amount repaid as a monthly installment of a home equity credit has both principal and interest. If you think that consistent with the principal, then under Section 80C of the tax Act, you’ll get relief in tax on payment of Rs 1.5 lakh during a year.

With this, for the quantity you’ve got paid within the sort of interest within the home equity credit instalment, there’s a separate tax exemption on the quantity of up to 2 lakh rupees during a year.