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HT Estates - - HTESTATES - Harsh Roongta

How does the bank iden­tify the home loan for a par­tic­u­lar house? Do they give the ex­act amount we ap­ply for? How is it de­cided?

– Ra­jat Guha The home loan el­i­gi­bil­ity for a par­tic­u­lar house is de­ter­mined by the bank based on the val­u­a­tion by them through val­uers they ap­point. Your loan el­i­gi­bil­ity is also based on your in­come, your reg­u­lar out­go­ings and re­pay­ment track record. Your over­all loan el­i­gi­bil­ity will be re­stricted to 80% of the agree­ment value or the val­u­a­tion as de­ter­mined by the bank, which­ever is lower.

I am salaried and want to know if I should take a joint home loan and what the tax im­pli­ca­tions will be.

– Su­mit Ku­mar It is a good idea to buy a prop­erty in joint names so as to avoid any ti­tle issues later. The joint owner has to join as a co-bor­rower when ap­ply­ing for loan. In case the sec­ond per­son is also earn­ing, this helps you in en­hanc­ing your el­i­gi­bil­ity in terms of loan amount. If the loan is taken in joint names and the house is self-oc­cu­pied, both ap­pli- cants can claim the de­duc­tion under Section 24 (B) upto the limit of ₹ 2 lakh each. Both per­sons can claim de­duc­tion under Section 80 (C) for re­pay-

What is the time al­lowed be­tween plot pur­chase and con­struc­tion if I have ap­plied for home loan?

– Suresh Rana Dif­fer­ent banks have dif­fer­ent clauses for start of con­struc­tion. Most banks al­low a gap of one to two years, within which, the con­struc­tion must be­gin. If you con­struct the house within a year from pur­chase of the plot, the bank may give you home loan in­clud­ing cost of plot of the land. No tax ben­e­fits are avail­able in re­spect of loan to buy a bare plot or in any year dur­ing which the con­struc­tion is not com­plete. My wife has a home loan which, I feel, is ex­pen­sive. Can we get ₹ 15 lakh each from a na­tion­alised bank and claim tax ex­emp­tion?

– Yash Ba­jaj It is not pos­si­ble to get two sep­a­rate home loans on the se­cu­rity of the same prop­erty. Al­ter­na­tively, you can avail a joint loan with your wife if your in­comes can jus­tify the higher loan amount. You can get the tax ben­e­fits on the loan re­pay­ments pro­vided you are a owner or a co-owner to the said prop­erty.

I STOCK

The home loan el­i­gi­bil­ity is de­ter­mined by the bank based on the val­u­a­tion they get through val­uers it ap­points.

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