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Various housing loans are offered by financial institutions. Prominent among these are:

This is the basic housing loan for the purchase of a new home which covers cost of the flat, deposits and charges, stamp duty and registration charges.

For implementing repair works and renovations in a home that has already been purchased by you.

For the construction of a new house.

For people who wish to sell the existing house and purchase another and need finance for the new house, until a buyer is found for the old house.

To pay off an existing housing loan and avail of the option of a loan with a lower rate of interest.

To pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present house.

As per requirements of NRIs who want to buy a house in India.

• Home Loans
• Home Improvement / Extension Loans
• Home Construction Loans
• Bridge Loans
• Balance Transfer
• Refinance Loans
• Loans To NRIs

Any Indian citizen, including Non Resident Indians, with a steady source of income can borrow funds for financing the cost of a flat from housing finance companies and banks

Yes, depending upon the eligibility criteria and policy of the bank.

Equated Monthly Installment ("EMI") is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month.

Interest rates vary from time to time and from institution to institution. The interest calculated either on a daily or monthly reducing or yearly reducing balances.

A fixed-rate housing loan is a loan where the rate of interest is constant through the entire term of the loan period.

A floating interest rate loan is a loan where the interest rate payable is linked to the market conditions such as the base rate and rises and falls with the bank rate varies. Hence a borrower bears the risk of interest rate fluctuations.

Repayment period options range generally from 5 to 20 years. Some of the banks may give loans up to 25 years also.

• Processing Fees payable to the lender on applying for a loan and is either a fixed amount not linked to the loan or may also be a percentage of the loan amount.
• Prepayment Penalty between 1% and 2% of the amount being pre paid is charged by some institutions when a loan is paid back before the end of the agreed duration. Many banks now don't levy penalty on partial Prepayment
• Stamp duty and registration fee as per prevailing rate of Government Authority.
• Miscellaneous costs such as administrative costs, legal documentation charges, technical consultant charges.

The flat purchased is the primary security and is mortgaged to the lending institution till the entire loan is repaid. Additional security such as life insurance policies, shares, bonds, fixed deposit receipts, national savings certificates can also be offered, as per the requirements of the institution.

Yes. Many lending companies require 1 guarantor or a co-applicant.

Varies from Bank to Bank but usually it is 15 - 20 days for a salaried person and 20 - 30 days for a self employed person depending on the applicant's documents.

Yes but it varies from Bank to Bank.

• Photographs
• Proof of age
• Identity papers
• Proof of residence
• For salaried individuals: Latest salary slip Bank statements reflecting salary credits for the previous six months
• For self employed individuals: certified copies of balance sheet, profit and loss statement and tax challans / tax returns for the previous 3 years
• For partnership/private limited companies: the Articles of Association, partnership deed and details about the firm
• For NRIs Latest salary certificate specifying, Name (as it appears in the passport), Date of joining, Passport Number, Designation, Perquisites and salary, Photocopy of labour card/identity card, Photocopy of valid resident visa stamped on the passport, Photocopy of monthly statement of local bank account, Property related documents.

Sometimes lending institutions offer incentives for a specified period or under a special scheme. Incentives could be any of the following:

• Free accident insurance
• Waiving of pre payment penalty
• Waiving of processing fee
• Property insurance
• * Loans are at the sole discretion of the bank

Deduction of interest on housing loan: In the case of self-occupied property acquired or constructed out of borrowed funds the deduction available for interest on capital borrowed is Rs. 1,50,000/-. In case of property, which is rented, the whole of the interest amount is allowed as deduction. The interest on borrowed funds in pre construction period is allowed over a 5-year period commencing from the previous year in which the house is acquired or constructed.

The limit of repayment of housing loan qualifying for deduction u/s 80C is Rs. 1,00,000/- (including Stamp Duty, Registeration Fee incurred for the purpose of transfer of such residential house property).

Long term capital gains on sale of property used for residence: Section 54 of the Income Tax Act provides relief to an individual or Hindu Undivided Family from capital gains arising from transfer of a residential house held by the assessee atleast for a period of 36 months. Such capital gains to the extent utilised for purchase (within 1 year before or 2 years after the date of sale) or construction (within 3 years of date of sale) of a residential house is exempt u/s 54. If the amount of capital gains is proposed to be utilised, but is not so utilised upto the due date for filing of return then, the amount of unutilised capital gain is required to be deposited in the "Capital Gains Account Scheme, 1988".

Section 54F of the Income Tax Act exempts long term capital gains arising from transfer of any long term capital asset other than a residential house. Such capital gains to the extent utilised for purchase (within 1 year before or 2 years after the date of sale) or construction (within 3 years of date of sale) of a residential house is exempt u/s 54F. To be entitled to this exemption the assessee should not own more than one residential house other than the house sold as on the date of transfer. The provisions of depositing the unutilised capital gain in the "Capital Gains Account Scheme, 1988" as explained above is also applicable.

• The above computation of service tax is provisional and subject to the final assessment by the service tax authorities. Errors and Omissions excepted. The above computation pertains to service tax liability on construction services, floor rise and view premium and does not pertain to taxes, cess and levies that are otherwise payable under the Agreement for Sale or in respect of the Unit. With effect from 1.6.2015, the effective service tax rate on Construction Services is:
  • 3.5% (for units/flats having carpet area less than 2000 square feet and where the amount charged is less than Rs.1 crore)
  • 4.2% (for units/f1ats other than (a) above), As per prevailing rate, the effective service tax rate on preferential location Services is 14%.
• In case you have obtained loan from Bank and the Bank disburses any amount, which is less than the amount demanded herein, please ensure that you pay the deficit amount on or before due date. Also please take note that in terms of the Agreement, if the amounts realized by us are less than the amount mentioned herein, the same would be the first portion towards interest for delayed payment, service tax and later towards Consideration Value.

• Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom etc.
• Built up Area is the carpet area plus the thickness of outer walls and the balcony.