What are the factors you should keep in mind before getting a home loan?
The main criteria are:-
1. Your income and your track record of repaying previous loans- this is obtained from the Credit Bureau.
2. Your current expenses including other loans you are servicing. The amount of loan related to the property value.
3. Ownership of the property-this means that the lending bank should be comfortable that the seller has full and complete ownership of the property.
4. Getting a loan depends on the report of the local bank surveyor who will inspect the property and give his recommendation.
Home Loan Eligibility depends on your ability to pay (ie. based on your salary) and not on the age of building. However, the quantum of loan depends on age and undivided share too, in addition to your repayment ability.
Do you get tax benefits on loan?
Yes, tax benefit on repayment of housing loan is available as per section 80C of the Income Tax Act, within the overall limit of Rs. 1 Lakh.
What is pre-EMI interest?
The pre-EMI interest is the interest charged by the bank in respect to the loan provided by the bank for the period of disbursement of the actual loan to you and the effective starting of the EMI.