Know How Home Loan EMI is Calculated in This Simple Video.
Home Loan requires long term commitment to EMI. Buying a Dream Home can turn into nightmare if due diligence is not given to fine prints. Bank Agents are mainly sales Agents and not really financial advisers.
It is difficult for all first-time home Loan Applicants and seeking right solicitation is important. Consult with your parents and friends First. Ask them what to watch out for, their lessons learnt.
Since, Most of us may take only one home loan, it is important to know the below details. @ LoanEasy we have simplified the process into 5 steps for home loan enlightenment.
STEP 1 : Know Your ELIGIBILITY :
Different individuals have different loan eligibility, determining one’s eligibility is a crucial and effective way to start the home loan application process. Once you establish the understanding of loan amount eligibility, you can safely arrive at a loan amount you can borrow from the banks.
Understanding and choosing a correct repayment option is crucial. Home loan EMIs ideally should be 65-70% of your take home salary after deducting existing EMIs. Understanding and choosing a right EMI makes sure that you don’t end up with an empty wallet at the start of the month.
STEP 2: Compare Banks :
There are more than 35 Banks and they are all competing for sales target. It is important to note that ‘Customer’ is king. A Loan Applicant Ends up paying double the principal amount during the loan tenure. Taking a Home Loan of 60 lakhs for 25 Years @ 9.6% you will end up paying 1.3 Cr .
LoanEasy portal gives maximum loan data comparison in minimum inputs. Simply Key in 2 details and compare across all Banks in India. Contact chat support to understand Bank comparison data.
STEP 3 : Loan Documents :
Documentation is a frustrating and time consuming process. 60% of the delay is due to documentation hassles.
Know what all documents will be required and get them ready. Insist on handing over all documents on the same day to the Bank Representative. As it will avoid to and fro later and also speed up the process.
Click on this step to see the list of Loan documents
STEP 4 : Loan Processing Charges :
When you apply for Home Loan to a Bank, various charges are levied for processing the loan. These include documentation, legal and credit check charges. The charges are between 0.25% to 0.5% of loan amount Or capped to a maximum value. Banks charge the amount irrespective of loan application is sanctioned or Not.
Step 5 : Tax Savings :
TAX Implications and Benefits on Home loan
Interest component: Under Section 24, Interest amount paid to the bank can be claimed for exemption from Income tax. You can claim upto Rs. 2 lakhs or the actual interest paid over the period of that financial year( whichever is lower)
Note: You can claim this exemption only when you are in possession of your property.
Principal: Principal amount paid to the bank as repayment towards home loan also comes under the ambit of tax Exemption. Under section 80C, you can claim upto Rs.1.5 Lakhs for income tax exempt.
This is again subject to the maximum level of Rs.150,000 across all income tax 80C investments.
Contact LoanEasy – 1800-102-6182
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