When you take a home loan for your dream home, you end up paying an interest and the loan amount. The interest is calculated by an interest rate charged on the loan amount. You repay the loan amount and interest in equal monthly installments. Home loan interest rates can be floating and fixed depending on the banks. They are charged according to the loan amount. EMI depends on the following factors:- Higher the loan amount, higher is the EMI. Lower the home loan interest rates, lower the EMI The maximum tenure…
Loans for home and land may seem to be the same since both are part of real estate. But in financial terms, home loan and land loan differ in a few major areas. Banks and Non-banking financial institutions (NBFCs) provide both loans. Also, despite certain differences, the rules for processing the loans are exactly the same. Let us look at the differences now; Purpose of the property: Home loans can be availed for houses that are ready to sale, under-construction, or approved for construction in the future. Such loans are given…
As the law allows a person to own multiple homes and avail of multiple home loans, we look at the implications on tax exemptions on the home loan for the second house There is no restriction on the number of properties you can own. Similarly, there is no restriction on the number of houses for which you can take home loans and claim tax benefits, either under the tax laws or banking laws. However, the amount of home loan available to you for all the properties taken together, shall depend on various factors…