HT Estates - - Property Classifieds - Harsh Roongta

Can we buy a home with joint loan taken with my brother and get tax ex­emp­tion for both of us (for both prin­ci­pal amount and in­ter­est) in the ra­tio of pay­ment made? Do they have any ex­tra in­ter­est rates for these kind of joint home loans?

—Jig­nesh Patil

You can ap­ply for a joint loan with your brother and you can get a loan if your com­bined/own in­come can jus­tify the same. How­ever, not many banks read­ily give loans to broth­ers as co-bor­row­ers so your choice might be a slightly lim­ited. In or­der to be able to claim the tax ben­e­fits in­di­vid­u­ally, you and your brother both should co-own­ers in the said prop­erty. Tax de­duc­tion ben­e­fits will be avail­able sep­a­rately un­der sec­tion 24 (in­ter­est payable on the loan) lim­ited to R1.50 lakh each if prop­erty is self oc­cu­pied and un­der Sec­tion 80C to the fullest ex­tent of R1 lakh each (for the prin­ci­ple re­paid) as per the re­spec­tive ra­tios of the loan. The rate of in­ter­est for joint home loans is same as that for the sin­gle ap­pli­cant, ex­pect that your choice maybe linked as dis­cussed above.

Does any bank have a home loan scheme where there’s a mora­to­rium of 18 months to two years for an un­der-con­struc­tion prop­erty? This would mean that I don’t have to pay money for 18 months and my EMI will start only from the 19th month.

—Sumesh Ku­mar

To the best of our knowl­edge, no bank pro­vides mora­to­rium for home loans. Most of­fer con­struc­tion-linked loan plans wherein you pay the sim­ple in­ter­est for the pe­riod of con­struc­tion (also known as pre-EMI in­ter­est) and the EMI starts on com­ple­tion of con­struc­tion. Lenders are choosy about which un­der-con­struc­tion project they will fund. En­sure that the project you se­lect is ap­proved by the lender of your choice.

Some builders have schemes where they bear the pre-EMI in­ter­est amount in the con­struc­tion pe­riod. This is a sep­a­rate ar­range­ment be­tween you and the builder. If the builder doesn’t pay the pre-EMI in­ter­est to the bank, you will have to still pay it to the bank.

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