LIST OF 10 INSTITUTES PROVIDING HOME LOAN WITH RATE OF INTEREST

List of ten financial institutions providing home loan with latest updated interest rates ( as per on April 2015).

S.no	Institution Name	Floating Interest rate
1.	S.B.I (State bank of India)	9.85% for women 9.90% for others
2.	ICICI Bank	9.85 %for women 9.90 %for others
3.	LIC Housing Finance	10.10%( fixed for two years)
4.	Axis bank home loan	9.90-10.45%
5.	HDFC Bank	9.90-10.40%
6.	IDBI	10.25%
7.	DHFL	10.15%
8.	PNB Bank	10.25%
9.	India bulls home loan	10.15% (upto 25lakh)then 11%
10.	Allahabad bank	10.25%

Latest tax rebate update: Under sec.24B of the income tax act the maximum deduction which is allowed is Rs2 lakh. This limit was increased from Rs 1.5 lakh in the last year budget. Exemption under section 80C is also allowed for principal repayments of Rs 1.5 lakh in the case of self-occupied house. According to RBI credit data the total housing loan credit in 2014 was approx. 6 Lakh crore

Home loan: 10 type of home loan in India

Many of us has a perception that we can only buy home loan for new home or plot we are planning but actually there are different type of home loan is available according to customers need here we have explained different type  of home loan available with the banks and other private lenders.

1. Home purchase loan: it is most common home loan availed by the most of the people.you can get this home loan if you are planning to buy new apartment or plot.

2. Home construction loan: Don’t confuse this loan with home purchase loan; it is entirely different
from that it involves construction of new home in the already existing property.

3. Home extension loan: if you are thinking to add one more room or any other such alteration in your owned house you can opt for this loan.

4. Home improvement loan:  However, if your want to do any renovation work or want to do some repair work this is the right loan for you.

5. Home conversion loan:  if you think that you have to stick with your old house because you are still paying the home loan than leave you worries and go ahead with home conversion loan. you can get this loan .you can shift to new house and your previous loan and extra money needed will be added to your new home loan and yes you don’t need to do prepayment of previous loan.

6. Land purchase loan: You can avail this loan to buy new plot or land where your wish to construct new house or it can be for investment purposes.

7. Bridge loan: These are advanced loans which are given for short term (less than two years).you can make advantage from this loan when you are planning to buy new home but still can’t find borrower for your old home, but in this case lender will mortgage your new house This loan is also known as gap loan.

8. Balance –transfer – loan: This loan gives you freedom to change your lender or shift loan anytime. Mostly it is used to transfer loan from high rate of interest to low rate of interest or if you are not satisfied with the services provided by current lender.

9. Stamp-duty-loan: your can use this loan to pay off stamp-duty charges on the purchase of property. This loan can be used only for stamp duty charges. Although this loan is not much popular but if you wish you can opt for it.

10. Re-finance loan: The process of repaying the previous loan by applying for another loan from current lender or new lender.

Meaning and benefits of home loan

HOME LOAN: MEANING AND BENEFITS

“It’s my home” this is the proud line which we love to say. We always dream for owing a house it include financial and emotion values. Home is a place where we spent quality time with our family and dear ones. To realize this dream you  need to do lots of home work .Though it is a complicated process but with proper knowledge you can get the home loan. 

Home loan or house loan

Home loan is a secured loan which is acquired from financial institution to buy a house. Banks or private lenders offer loan against commercial or personal property. They give ownership to the borrower which is subject to terms and conditions, in case if they are not meet out by the borrower or if they fail to repay in future, lenders can recover their money by selling the secured property. Home loans have fixed or floating interest rates and other terms also. Home loan financing is also known as mortgage loan.

Why should go for home loan 

Buying a house require huge amount of investment which can make big dent on your pocket. But with the help of home loan you can reduce it and can meet out your monthly expenses conveniently with affordable monthly EMI. And if you add a co-partner (wife or any other family member) you can make maximum benefits of house loan. You can adjust your EMI and interest rate by choosing the different term. Long term generally means less EMI per month which is said to be comfortable and convenient, but you have to pay a bit more interest amount. However,if you  can afford to repay in less time than go for short term as it will reduce your interest amount.

Other advantages of house loan are that it saves your monthly rent and provides you tax benefits as well.

As per section 80C read with section 8CCE of the income tax act 1961 the principal repayment is up to rupee 1 lakh on your home loan will be allowed as deduction from the gross total income subject to fulfillment of prescribed conditions let’s take an example

Suppose your income is 6,50000 p.a

Principal repayment for the same year Rs 110000 and interest payable for the year 160000

Total deductions allowed rs2.5 lakh (1.5 lakh towards interest payable and 1 lakh for principal repayment of the loan)

Thus, your taxable income will reduce to 4lakh (6.5 lakh-2.5 lakh)