Frequently Ask Question

1. What is the meaning of EMI?

Ans. The repayment of the loan will be made in Equated Monthly Installments (EMI). The EMI is 1/12th of the Equated Annual Installment. The EMI comprises Principal and Interest components. The size of the EMI depends on the quantum of loan, interest rate applicable and tenure of loan.

2. What is the meaning of PEMI?

Ans.In case of part disbursement of the loan, interest is payable on the disbursed amount, till the final disbursement is made. This is called PEMI. PEMI is payable every month from the date of each part disbursement upto the date of commencement of EMI.

3. What security will I have to provide?

Ans.Security for the loan is the first mortgage of the property to be financed, normally by way of deposit of title deeds and / or any such other collateral security as may be deemed fit and necessary by Assignment of Life Insurance Policy, if found necessary, will also be required.

4. Can I prepay the loan ahead of schedule?

Ans.Prepayment of the loan, ahead of the contracted schedule in part or full, is permitted subject to payment of nominal fees / charges as stipulated by from time to time.

5.What tax benefits are available to me?

Ans. An individual who avails a Home Loan or a Home Extension Loan is eligible for certain benefits under the Income Tax Act, 1961. Principal repayments qualify for deduction u/s 88 of the Income Tax Act, 1961, upto a maximum of Rs. 20,000/-. Interest payments qualify for deduction u/s 24 (i) (vi) of the Income Tax Act, 1961, upto a maximum of Rs. 1,50,000/-.

6.Is it compulsory to register an agreement for sale?

Ans.In many states in India, the Agreement for Sale between the builder and purchaser is required to be registered by law. You are advised, in your own interest, to lodge the Agreement for registration within four months of the date of the Agreement at the local office of the Sub-Registrar of the State Government, under the Indian Registration Act, 1908.

7.What are the restrictions on transfer of immovable property?

Ans.In terms of Chapter XXC of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this can be proceeded with only after complying with the requirements prescribed therein.

8.Do I need to insure the property?

Ans.Every property needs to be insured. However, insures your property at no cost to you.

9.Are there any hidden charges?

Ans. There are no hidden charges. The only fees charged for the Loans are Processing fees & Legal/Administrative fees. These depend on the loan amount.

10.What is the meaning of Interest Subsidy?

Ans.Under Interest Subsidy, some portion of the interest on housing loans taken from approved institutions like is borne by your employer. In such case, your loan eligibility will increase substantially.

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