Home Loan
Home loan is an amount being lent by various banks or NBFC to the individual to buy a house, purchase a plot, construct a house, repair & renovate the house, balance transfer of existing home loan, etc.
Bank or NBFC mortgaged the property and charged EMI (Equated Monthly Installment) on the loan amount being lent by them. EMI consists of both interest and principal amount, which has to be paid by the borrower to the bank or NBFC. EMI calculation depends upon three factors i.e. (i) Loan Amount, (ii) Loan Tenure, and (iii) Rate of Interest. EMI on loan amount remains same throughout the loan tenure, if rate of interest not changed.
What is Home Loan?
Home loan is an amount being lent by various banks or NBFC to the individual to buy a house, purchase a plot, construct a house, repair & renovate the house, balance transfer of existing home loan, etc.
Bank or NBFC mortgaged the property and charged EMI (Equated Monthly Installment) on the loan amount being lent by them. EMI consists of both interest and principal amount, which has to be paid by the borrower to the bank or NBFC. EMI calculation depends upon three factors i.e. (i) Loan Amount, (ii) Loan Tenure, and (iii) Rate of Interest. EMI on loan amount remains same throughout the loan tenure, if rate of interest not changed.
In India, owning a home is one of the key factors of success. There has been a continuous desire to own a home as there is a significant rise in the disposable incomes, particularly in urban and semi-urban areas, tax rebate on repayment of housing loans, declining rate of interest and rises in the nuclear family,. As there is a huge demand, the price of the property is very high, and owning a house is a major decision for an individual. As the price of the property is very high, home loan finance company in Delhi plays a major role for an individual to buy a house.
Benefits of Home Loan
In India, real estate is the second largest employer after agriculture and is slated to grow at 30% over the next decade. The Indian real estate market is expected to touch US$ 180 billion by 2020. In the FY 2008-2020, the market size of this sector is expected to grow at a Compounded Annual Growth Rate of 11.2%.
- Rented House to Own House:If you are residing in a rented house, then it is always advisable to take a home loan and shift to your owned house. Rent will compensate your EMI (Equated Monthly Installments) and this will also give you capital appreciation. Investment in the property by taking housing loan will not only give capital appreciation but also peace of mind, social respect and recognition.
- High Property Price:As price of the property is very high and buyer may not be having all the amount, bank or NBFC are there to lend you money in the shape of housing loan for which they charge interest on the loan amount.
- Income Tax Rebate on Home Loan Interest Payment:As per Income Tax Act 1961, If you are paying housing loan EMI, which consists interest and principal component. The interest portion of the EMI can be claimed as a deduction from total income upto maximum of Rs. 2 Lakhs U/s 24.
- Deduction on Home Loan Principal Payment:The principal portion of the EMI can be claimed as a deduction from total income upto maximum of Rs. 1.5 Lakhs U/s 80c.
- Deduction for Stamp Duty and Registration Charges:Deduction for stamp duty and registration charges can also be claimed U/s 80c but within limit of Rs. 1.50 Lakhs.
- Deduction for First Time Home Buyers:If any individual do not have any owned house and buying a house first time, then as per Income Tax Act 1961, Sec 80EE he can claimed an additional deduction of up to Rs. 50,000/-.
- Deduction for Joint Home Loan:If any individual has taken home loan jointly then each of them can claim a deduction of home loan interest up to Rs. 2 lakh u/s sec 24b and deduction of principal portion of home loan up to Rs. 1.50 lakh u/s 80c. To claim this deduction, property must be in the joint name. So joint home loan can help you to claim larger tax benefit.
- Regular Income:If an individual buying a property for the investment purpose then it is a good source of regular income in the form of rent. This rent will not only compensate your home loan EMI but also it will give you capital appreciation.
- Cheap Rate of Interest:Bank is offering very low rate of interest on housing loan in comparison to private lender or financer, so it’s a win-win situation for both bank and borrower.
Types of Home Loan
Type of home loan depends upon types of property, an individual want to purchase. As per the need of the customer banks or financial institution come up with different types of home loan finance company in Delhi NCR products at lower rate of interest. As per the need of the customer bank or financial institution provides different types of home loan. Each housing loan product has its unique feature and advantage, so it is always advisable to consult with a professional consultant before taking a home loan.
A professional consultant will save your time and money both, If you need a professional guidance then contact Gaurik Business Solutions home loan provider in Delhi NCR. We are always with you.
Home Loan can be classified into following ways:
- Home Loan For Ready To Move In House:When an individual buying a ready to move in house or flat from any authority, builder, seller or any other legal body then HOME PURCHASE LOAN provided by the bank or NBFC. In India, you can take Gaurik Business Solutions professional consultancy. We will be there with you for your each step.
- Plot Loan / Land Purchase Loan:Plot Loan also comes under the head “HOME LOAN”. When an individual buying a piece of vacant plot or land from any authority, builder, seller or any other legal body then PLOT PURCHASE LOAN provided by the bank or NBFC.
- Construction Loan:Construction Loan also comes under the head “HOME LOAN”. When an individual want to built or construct his plot then construction loan provided by the bank or NBFC. This type of loan provided by the bank or NBFC only if you are already owned a plot. Bank is providing construction loan on the basis of construction estimate duly vetted by bank or NBFC empanelled architect. Loan is disbursed as per the stage of construction being recommended by empanelled valuer of the bank.
- Plot Plus Construction Loan:It is combination of two loan i.e. Plot Loan and Construction loan. When a home loan provider in Delhi NCR borrows money, the borrower wants to construct a home after buying plot then bank or financial institutes provides him plot plus construction loan. Here one thing is to be remembered that construction loan will be disbursed once plot loan is disbursed and all the property papers related to plot is in the record of bank or NBFC. Bank is providing construction loan on the basis of construction estimate duly vetted by bank or NBFC empanelled architect. Loan is disbursed as per the stage of construction being recommended by empanelled valuer of the bank.
- Home Rennovation Loan:If a home loan borrower wants to renovate his house or want to construct additional room or any type of extension in the current structure then bank or NBFC provides home renovation loan. To avail home renovation loan, home loan borrower has to submit a detailed renovation estimate. Bank is providing home renovation loan on the basis of renovation estimate duly vetted by bank or NBFC empaneled architect.
Documents required
KYC DOCUMENTS
- Pan Card
- Aadhar Card
- Voter ID Card
- Passport
- Copy of Rent Agreement/ Registered Lease Deed
- Latest Month Electricity Bill
- Copy of VAT/ Sales Tax, GST, Import-Export or any other registration Certificate
- Latest Office Address proof i.e electricity bill, rent agreement etc.
- Company Profile on the Letterhead of the firm
INCOME DOCUMENTS
- Latest 3 year ITR with computation of Income including P & L a/c, balance sheet with their schedule and annexures duly certified by CA
- Form No. 3 CA & 3 CD in case of audited balance sheet
- Latest 2 years VAT/ Sales Tax/ GST return
- Latest 2 years form 26AS if applicable
BANK STATEMENTS
- One year up to date all the saving and current account statement
