Home Loans

Home loans not only helps a person realize his/her dream of owning a dream residential property, but also provides many tax advantages for individual tax payers.

Applying for a bank loan is the first step, a prospective homeowner takes towards acquiring his dream home. For that, it’s essential that one takes the required guidance of an expert professional well-versed in home loans to ensure that they choose the right home loan. It’s here that Giridhari constructions provides you an insight into how home loans are obtained and dealt with.

A Home Loan can be a fixed rate home loan or a floating rate loan. In a fixed home loan, the repayment of home loans is done in fixed equal installments over the entire period of the loan. The interest rate doesn’t change with market fluctuations. A fixed-rate home loan is excellent for those who are good at budgeting and want a fixed monthly repayment schedule, which is easy to budget and doesn’t fluctuate.

On the other hand, in a floating rate loan, the interest rate on the loan depends on a benchmark rate fixed by the home loan lender. This benchmark rate varies as per the market and the change can happen as frequently as once in three or six months. Home loans on floating interest rates are tied to a base rate plus a floating element thereof. So, if the base rate varies the floating interest rate also varies.

You must choose a floating rate loan, if you are anticipating the interest rates to decrease in the future. However, even within the categories of floating and fixed rate loans there are terms which differentiate one loan from another. So it’s advisable to consult a professional expert who can guide you on the right home loan that suits your specific requirements.


Tax Benfit Information

A home loan is not a burden. It is in fact a valuable tool to enjoy tax benefits. The tax benefits you receive are considerable that will help you manage your finances well.

The home loan borrower enjoys Tax Benefits on both Interest paid and the Principal re-paid. Under Section 24(d) of Income Tax, the deduction of interest payable on the home loan is up to a maximum of Rs. 1, 50,000 and under Section 80(c) of Income Tax, principal amount for the repayment of loan along with other savings and investments is eligible for tax deduction up to a maximum limit of Rs. 1, 50,000

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Real Estate FAQ'S

What is the difference between Built-Up Area, Super Built-Up Area, and Carpet Area?

Carpet Area: It’s the area of the apartment that does not include the area of the walls i.e. the area of the apartment that a carpet can cover.

Built-Up Area: It’s the area of the apartment that includes the area covered by the walls.

Super Built-Up Area: It’s the area of the apartment that includes the built-up areas such as the lobby, lifts, stairs etc. It applies only for multi-dwelling units, such as flat complexes.

What is the difference between the lease agreement and the Leave and License agreement?

As per Section 105 of The Transfer of Property Act, 1882, a Lease is a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. Under a lease agreement, the lessor (owner of the property) gives the lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement.

A License as per Section 52 of the Indian Easements Act, 1882, does not allow any interest in the premises on the licensee’s part. A License Agreement merely gives the licensee the right to use and occupy the premises for a limited duration.

A lease agreement needs to be stamped and registered and the amount payable towards the lease deed’s stamp duty is more than that payable towards the Leave and License’s. However, for a period exceeding three years, the stamp duty is same for both agreements.

What are the implications of entering into a lease agreement?

There are many implications when entering into a Lease Agreement. They include the payment of the stamp duty, registration of the Lease Agreement, etc.

Is it essential for a foreign citizen of non-Indian origin to take permission from the Reserve Bank of India (RBI) for acquisition of immovable property?

Yes, it’s essential. The RBI grants permission to a foreign citizen of non-Indian origin/foreign companies if the property is purchased for residential use and the consideration is paid by way of foreign exchange.

What does Non Resident Indian (NRI) mean?

A NRI means an Indian citizen who stays in a foreign country

  • For employment or carrying on their business or any kind of vocations.
  • Working on an assignment with foreign governments or international agencies.

They also refer to officials of central and state government and public sector undertakings deputed abroad on temporary assignments or posted to their offices abroad.

Why is it considered essential to register a property? What is the exact purpose of registration?

One who registers a property say, the transaction of an immovable property, will ensure that the said property becomes a permanent public record. In addition, Title or interest can be acquired only if the deed is registered.

I have a flat which I want to sell and buy a new flat bigger in area. What are my tax implications with regard to capital gains?

If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.

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