SERVICES
At Sneha Corp, we believe in making house buying experience a pleasant one. We have a
home loan guide that will make the process a lot easier.
Step 1
Approach a Housing Finance Company (HFC) with your latest salary slip and TDS Form 16 of the last two financial years. The same is mandatory for the co-applicant. The loan officer will informally tell you the amount of loan you are eligible for, the areas in which they finance flats and the terms of the same. Collect a loan application form and confirm the needed documents (mainly proof of income). Visit more than one company since you are likely to get better terms/larger loan amount if you shop for the best deal.
Step 2
At your chosen HFC, submit the duly filled loan application, along with the requested documents and an application fee (around 1%). They will then interview you on the same. After conducting an appraisal of your application, the HFC will give an in principle sanction of your loan.
Step 3
You now have to submit your property documents, which should show a clear title. The HFC will check these and levy an administrative fee (around 1%). It will then disburse the loan, either fully or in instalments, directly to the builder/seller of the flat.
How much amount of housing loan can one get?
It depends on a person's repaying capacity based on your income. You can add your spouse's income to increase the amount of loan.
Are there any tax benefits with respect to housing loans?
Tax benefits are available to consumers of house loans for the interest component as well as principal component of the housing loans. The upper limit of the interest payment deduction is Rs 150,000 per annum. The section 80C also allows tax benefits on principal repayments.
What is reducing balance method of interest payment?
In reducing balance method you reduce the amount of principal payment already paid by you from the initial loan amount. You pay only the interest on principal unpaid till that point of time and not the entire loan amount.
What is floating interest rate?
In a floating interest rate, your interest payment will vary according to the market lending rate. If interest rates rise, your interest payments will rise and vice-versa. You bear the risk of interest fluctuations in the market. Floating rates are slightly cheaper than fixed interest rates.
What is fixed interest rate?
In a fixed interest rate, your interest rate is fixed over the entire tenure of loan.
Moreover for the Property tax purpose in India, real property is taxed in the jurisdiction of its location where as personal property can be taxed according to the jurisdiction or taxpayer's residence. Although there are many other forms of taxes in India like Income tax, Sales tax etc. yet the property tax is the single largest source of revenue for the government. The tax paid by you is utilized for constructing roads, maintaining parks, etc. The owner of the property pays property tax and local bodies(local taxing unit) levy tax on the property. The local taxing unit is a legal body of government with elected officers. Property tax rates are determined and these are based on the value of your property.
Home Loan Guide
How do I apply for a Home Loan?Step 1
Approach a Housing Finance Company (HFC) with your latest salary slip and TDS Form 16 of the last two financial years. The same is mandatory for the co-applicant. The loan officer will informally tell you the amount of loan you are eligible for, the areas in which they finance flats and the terms of the same. Collect a loan application form and confirm the needed documents (mainly proof of income). Visit more than one company since you are likely to get better terms/larger loan amount if you shop for the best deal.
Step 2
At your chosen HFC, submit the duly filled loan application, along with the requested documents and an application fee (around 1%). They will then interview you on the same. After conducting an appraisal of your application, the HFC will give an in principle sanction of your loan.
Step 3
You now have to submit your property documents, which should show a clear title. The HFC will check these and levy an administrative fee (around 1%). It will then disburse the loan, either fully or in instalments, directly to the builder/seller of the flat.
How much amount of housing loan can one get?
It depends on a person's repaying capacity based on your income. You can add your spouse's income to increase the amount of loan.
Are there any tax benefits with respect to housing loans?
Tax benefits are available to consumers of house loans for the interest component as well as principal component of the housing loans. The upper limit of the interest payment deduction is Rs 150,000 per annum. The section 80C also allows tax benefits on principal repayments.
What is reducing balance method of interest payment?
In reducing balance method you reduce the amount of principal payment already paid by you from the initial loan amount. You pay only the interest on principal unpaid till that point of time and not the entire loan amount.
What is floating interest rate?
In a floating interest rate, your interest payment will vary according to the market lending rate. If interest rates rise, your interest payments will rise and vice-versa. You bear the risk of interest fluctuations in the market. Floating rates are slightly cheaper than fixed interest rates.
What is fixed interest rate?
In a fixed interest rate, your interest rate is fixed over the entire tenure of loan.
PROPERTY TAX
Property by law is basically of two types: real and personal. Property tax is levied on both real and personal property. Property tax assessment for both of these is different. Any property be it real or personal is further categorised according to its use.Moreover for the Property tax purpose in India, real property is taxed in the jurisdiction of its location where as personal property can be taxed according to the jurisdiction or taxpayer's residence. Although there are many other forms of taxes in India like Income tax, Sales tax etc. yet the property tax is the single largest source of revenue for the government. The tax paid by you is utilized for constructing roads, maintaining parks, etc. The owner of the property pays property tax and local bodies(local taxing unit) levy tax on the property. The local taxing unit is a legal body of government with elected officers. Property tax rates are determined and these are based on the value of your property.
