Anyone who has a property in a leading city or town in India and looking to raise some higher value funds at a lower rate can use a unique funding option.
Have you heard about the loan against property or mortgage loan?
What Is A Loan Against Property Or Mortgage Loan?
The loan against property is a useful funding option and refers to a loan which is disbursed or offered against the property. The loan that you can grab is a certain percentage of the market value of your property, mostly around 70-80%.
The loan against property or mortgage loan is a secured loan where a borrower keeps his/her property as collateral to get the loan amount.
Not only you can get a higher value of money as high as up to Rs.3.5 crore as per your loan against property eligibility, but you can also get some tax benefits. Read on to know some tax benefits that you can lap up while applying for a mortgage loan.
For What Purposes You Can Take The Loan Against Property?
- To fund your children’s overseas education
- For funding any urgent medical emergency
- For arranging the wedding ceremony of your son and daughter
- For going on your dream vacation or world tour
- For expanding your business
- For other personal needs
What Kind Of Property Can Be Mortgaged?
You are free to mortgage a self-occupied as well as a rented house or even a plot or a piece of land under your possession. The only thing that you need to ensure is that all such properties are free from all types of litigation. Overall, the title deed (ownership) of the property should be clear.
Loan Against Property Tax Advantages
Generally, the loan against property or mortgage loan facility is eligible for an Income Tax deduction or exemption under the Sections 80C and 24(b).
Nonetheless, if a borrower has mortgaged a house to get the loan against property, then there is no exemption.
The advantage that you get, in this case, is that the loan against property interest rate is usually lower than that of other available loans.
Here are some situations in which you can claim the tax benefits for a loan against property:
- Using the loan amount for business purposes can let you claim the interest paid, and processing and document charges as per Section 37(1).
- If you have used the loan amount for personal reasons such as wedding expenses or children’s education, you can’t claim any deductions.
- Anyone using the loan against property or mortgage loan money for buying a new home/other property is eligible for deduction as per the Section 24(b) of the Income Tax Act.
You are now aware of the concept and tax benefits for loan against property or mortgage loan facility. If you are ready, you can start comparing all great offers online and apply online.
Bajaj Finserv comes with many pre-approved deals on loan against property or mortgage loan, home loans, credit cards, EMI finance, personal loans and others.
It is to help a prospective borrower go through the loan procedures easily, hassle-free and faster. All that you need to do is share your basic details such as your name and mobile number and check out your pre-approved loan offers.