I understand that under the SBI Yuva Home Loan Scheme, only the interest applicable on home loan is payable during the first 36 months. The regular EMIs start after completion of 36 months. My flat is getting registered next month and I do not want to pay only interest for three years. Is there any clause in this scheme that if a flat is getting registered immediately then one can pay regular EMI from the very first month the loan is released?
- Subhash Mandal The SBI Yuva Home Loan scheme is a step up loan provided by SBI to a loan consumer, based on the assumption that his salary will increase by a certain percentage annually. Under a step-up loan, the loan amount eligibility may be higher than a normal home loan owing to the potential of salary increase. The loan eligibility for this loan is calculated basis the projected/expected increase in income in subsequent years, rather than on the existing salary. This scheme has been designed to give you a higher loan eligibility. The initial outgo is lower (for three years ) as this does not include any principal repayment. You can also prepay for which there will be no charges. If the loan amount eligibility is not a constraint you can always go for a regular home loan and start paying EMIs. The interest rate is the same for regular SBI home loan and this scheme. I am working in an MNC. As part of my CTC the company provides a facility of interest payment (partial) on bank loans. I have a few queries:
Do banks provide loans for plot purchase also?
If yes, will this be also be covered under home loan?
Will this loan have the same rebate as applicable in income tax under the home loan category?
— Shagun Gupta Lenders are more selective while providing plot loans than home loans. These loans are available for a lower tenure as compared to a home loan and are sometimes more expensive (up to 2% higher) than normal home loans. The plot loans are generally available only when the plot is purchased from statutory authorities or from developers who are pre-approved by the lender. Even the down payment requirement is normally higher at around 30-40% for such loans.
If you are planning to construct a house on that plot of land, you should take a composite loan from any bank to cover the cost of the plot as well as the construction, but you will have to commence the construction within a reasonable period between one to two years from the date of purchase of the plot.
Taking a composite loan brings more benefits in terms of financing and tax benefits. The loan financing in case of a composite loan goes up to 80%-90% of the property value as compared to the plot loan’s 60%-65%. Moreover, you can avail of tax benefits under Section 80C for the principle repayment and Section 24 for the interest paid on the composite housing loan including the cost of the plot from the year in which the construction is completed. Pure plot loans do not qualify for tax benefits. I am a retired person and own a property worth ₹ 2 crore. I now want to avail a loan against this property. My pension is ₹ 20,000 and monthly incentives via a contractual job is ₹ 60,000. What is the maximum amount I can get as a loan?
- Badshah Mamgain The maximum age for any loan is restricted to 60 years for a salaried person and 65 years for a self-employed professional. As a retired person, you can get a home loan only if you can establish consistency of your contractual income as the amount needs to be paid of while you are in active service.