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Eligibility |
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Broadly speaking, home loans can be availed whether
you want to buy or build a house. Salaried Employees and Self-Employed
Indian residents over 21 years of age at the beginning of the loan
and below 65 at its maturity can avail Home Loans. |
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Loan sanction |
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The loan sanction amount depends on your repayment
capacity - based on your total current income and your future repayment
capacity. Your spouse's gross income can be added to enhance the loan
amount eligibility. The maximum loan that can be sanctioned varies
with each bank/institution and generally ranges from Rs.10 lakhs to
Rs.1 crore. |
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Repayment |
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Usually loan tenures range from 5 years to 20 years
and does not extend beyond the age of retirement or when you turn
65 years of age - whichever comes first. The EMI - Equated Monthly
Installment is the amount of money you repay every month until the
end of the loan tenure - which comprises both principal component
and an interest component. |
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Tax Benefits |
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The Income Tax Act 1961, allows tax concessions
on both the principal and interest components of the loan. The upper
limit of the amount of deduction of interest payment deductible from
your gross total income is now Rs.1,50,000 per annum. In addition,
sec. 88 offers tax benefits for principal repayments up to Rs.20,000. |
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