Home loans help you with a lump-sum advance of funds towards buying your desired property, this amount will be repayable with interest. However you can re-pay the amount advanced via EMIs (Equated Monthly Installments), thus enabling you to approach realizing your home dream in a convenient and structured way.

Income tax benefits of home loan

Availing a home loan may grant you to the following tax benefits

• The repayments (EMIs) towards the principal loan amount availed are eligible for a tax deduction upto Rs 1.5 lakh, under section 80C of the Income tax Act 1961. While Section 24(b) of the Income Tax Act 1961, provides for a deduction on the interest portion of home loan EMIs up to Rs. 2 lakh per annum. However if the house purchased is a “let out property” i.e. is rented out. the deductions can apply for the entire interest payable.
• Additionally first time home buyers may be eligible for further deductions under Section 80EE, upto Rs.50,000/- per annum after they’ve exhausted the limit for interest per Section 24(b)
• For loan taken towards re-development, reconstruction or renovations of property, the amount eligible for tax deduction is set at Rs.30000 irrespective of it being used to stay or let out.

Parameters to decide Home loan eligibility

• The Income of all applicants
• CIBIL score
• Age of the primary applicant
• Number of dependents that the applicants support
• Assets and liabilities of the applicants
• Stability and continuity of the primary applicant’s occupation