CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I re­cently se­cured a loan amount of ₹ 16 lakh from a private bank for a pe­riod of 20 years. The in­ter­est rate is 10.15 % (float­ing) and ₹ 7 lakh has al­ready been dis­bursed. I want to pay ₹ 5 lakh di­rectly to the builder and re­quest the bank to not dis­burse the full (sanc­tioned) amount to the builder. Al­though ₹ 16 lakh have been sanc­tioned, I re­quired only ₹ 11 lakh. Please ad­vise

— Yaksh Madan You can approach the bank to make ar­range­ments to get the sanc­tioned loan amount re­duced. Please note that the bank may not re­fund you any por­tion of the pro­cess­ing fees paid in case you want the loan (al­ready sanc­tioned) to be re­duced.

Any other cost or im­pact of such re­duc­tion in the sanc­tioned amount is un­likely. I am go­ing to pur­chase a sin­gle storey house with a new con­struc­tion. After buy­ing it, I want to con­struct an­other floor. For all my ex­penses I am go­ing to take a loan of ₹ 25 lakh from a private fi­nancier. Will this money qual­ify for in­come tax re­bates for prin­ci­pal re­pay­ment and in­ter­est paid?

— Shuchi Bha­gat Nor­mally, tax ben­e­fits in re­spect of in­ter­est can be claimed on loan taken from any en­tity pro­vided you can prove that the loan was taken to ac­quire the house prop­erty.

How­ever, the tax ben­e­fits under Section 80C shall only be avail­able if the loan has been taken from spec­i­fied in­sti­tu­tion/en­ti­ties like banks, hous­ing finance com­pa­nies, gov­ern­ments, pub­lic lim­ited com­pa­nies etc.

Since your fi­nancier is an NBFC, your home loan will be el­i­gi­ble for tax ben­e­fits. You can avail tax ben­e­fits under Section 24B for in­ter­est payable (lim­ited to ₹ 2 lakh if the prop­erty is self oc­cu­pied) and up to ₹ 1.5 lakh under Section 80 C for re­pay­ment of the hous­ing loan.

How­ever, the de­duc­tion under Section 80 C can only be claimed in ag­gre­gate with other items of in­vest­ments like life in­sur­ance pre­mium, con­tri­bu­tion to prov­i­dent funds, etc. You can also claim the ben­e­fits under Section 24B and 80C for con­struc­tion of first floor on your ex­ist­ing prop­erty if other con­di­tions are ful­filled.

For in­stance, the con­struc­tion of the house should be com­pleted within three years from the date of your first dis­burse­ment.

I have al­ready paid the pro­cess­ing charges of ₹ 11,400 plus 562 to the bank for the loan amount of ₹ 20 lakh. Just be­fore fi­nal­i­sa­tion of the loan agree­ment for the hous­ing unit the agent is ask­ing for an extra ₹ 1,000 for stamp­ing the agree­ment pa­pers. This was not dis­closed dur­ing dis­cus­sions for the loan scheme. Should I take up this mat­ter with the bank?

— Nim­rat Tyagi Most of the home loan len­ders charge pro­cess­ing fee only to­wards get­ting your loan ap­pli­ca­tion pro­cessed and charge sep­a­rately for out-of-pocket ex­penses like stamp­ing of loan agree­ment and mort­gage, doc­u­men­ta­tion charges, etc.

Harsh Roongta is CEO, Apna Paisa. He can be reached at ceo@ap­na­paisa.com

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