Steps to Avail Low Interest Rates for Property Loan in India

What is a loan against property?

Borrowers can obtain a loan against property in order to cover any unforeseen large ticket expenses such as property purchase, renovation, debt consolidation, education fees, and so on. Borrowers can obtain a loan against property by pledging their commercial or residential property as collateral with a lender, and because the loan is secured, the lender is less hesitant to approve a loan against property at competitive interest rates, affordable property loan EMI, large sanction amounts, and so on.

Here are some steps you can take to get a lower interest rate on your home loan:

A Loan Property EMI Calculator: 

A loan against property is a large financial commitment that requires careful planning, which you can accomplish by using a property loan calculator. Calculate property loan EMI using an online tool that allows you to calculate the EMIs you will pay over the life of the loan by providing basic information such as the interest rate, tenor period, and required loan amount. Because this loan against property EMI calculator is free to use, you can make as many changes as you need to understand the best interest rate for your financial situation. You can choose the lender who offers the best loan terms for you. 

Loan Against Property Tax Benefits

A loan against property entitles you to substantial tax breaks, and here's how to take advantage of them:

• If you use the loan proceeds for business purposes, you can claim tax breaks. The tax deduction can be applied to the interest paid, charges incurred, and corresponding fees. These expenses are claimed as business expenses under Section 37 (1) of the Income Tax Act.

• Salaried individuals may claim a tax deduction under Section 24(b) of the Income Tax Act if the funds are used to purchase another residential property. You can claim a maximum deduction of Rs. 2 lakhs; however, under Section 24(b), you can only claim this deduction if you provide substantial proof of the link between the funds and their end-use.

• Sections 24(b) and 37(1) only apply to the interest paid and not the principal repaid.