In Floating rate loans, change in MCLR rate will have direct impact on the interest rate of Home Loan.
Yes. Borrower can claim tax benefits on the availed home loan as per below details.
Summary of tax benefits on principal and interest paid is as below
|Tax Benefits||On Principal Repaid||On Interest Paid|
|First Home – Self Occupied||Actual principal repaid subject to a maximum of Rs. 1,50,000 (Rs. 2 lakh for senior citizens) can be claimed as investment eligible for tax deduction under section 80C.||Actual home loan interest paid subject to a maximum of Rs. 2 lakh (Rs. 3 lakh for senior citizens) if house construction completed within 5 years from the end of the financial year in which loan is taken
If construction of house not completed within five years then Rs. 30,000 is tax exempt
Additional exemption of upto Rs. 50,000 on interest paid for loans upto Rs. 35 lakh with cost of home upto Rs. 50 lakh.
|First Home – Rented/ Vacant (deemed to be let out property)||Upto Rs. 1,50,000 (Rs. 2 lakh for senior citizens) eligible for tax deduction under Section 80 C. The deduction is available only if the property owner is staying in a different city for work.||Exemption on interest is capped at lower of two, a) Rs. 2,00,000 or b) actual interest paid for all properties owned by a tax payer.|
|Second Home or Additional Property||None||Exemption on interest is capped at lower of two, a) Rs. 2,00,000 or
b)actual interest paid for all properties owned by a tax payer
|Under Construction Property||None||The interest paid can be claimed in equal parts in five financial years post completion or handing over of property within the overall annual limit of Rs. 2 lakh.|
Prepayment / foreclosure is allowed on Home Loan without any charges.
Floating rate of interest are the interest rate which changes with change in interest rates. If rate of interest increases by the lender, customer who has avail loan on floating rate of interest, their Rate of interest also increases hence customer repayment (EMI) also increases.
Disclaimer (Things you should know):
For loans: Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.
* Rs. 5,000 Flat processing fee applicable for women applicants.