Home Loan

Yes, a house loan is eligible for a tax deduction. Home loan tax benefits include Section 80C’s deduction of Rs. 1.5 lakh on the principal repayment and Section 24B’s deduction of Rs.2 lakh on the interest repayment. You can also claim home loan tax deduction for registration fees and stamp duty charges under Section 80C. In the Union Budget 2021, the government extended the additional deduction of Rs. 1.5 lakh for interest repayment on home loan by 31 March 2022 under the Section 80 EEA to purchase a house costing up to Rs. 45 lakh. This additional deduction is being provided over and above the existing 2 lakh deduction.

As per RBI guidelines, no lender is permitted to offer 100% home financing. You need to make a down payment amounting to 10-20% of the property’s purchase price. Typically, you can obtain up to 80% housing loan financing for your property.

Any Indian national with a strong financial profile can avail of a home loan from Saarebank. The home loan eligibility terms include:
Age limit for salaried: 23 to 62 years
Age limit for self-employed: 25 to 70 years
Minimum salary: Rs.25,000
Work experience for salaried: Minimum 3 years
Business continuity: Minimum 5 years
The upper age limit is considered as the age at the time of maturity of the loan

Saarebank requires you to have a minimum net monthly income of Rs.25,000 to Rs.30,000 in order to get a housing loan. In places such as Delhi, Gurugram, Nodia, and Delhi NCR your monthly salary should be at least Rs.30,000. In cities such as Bangalore, Chennai, Hyderabad, and Goa, you must earn at least Rs.25,000 per month.

Salaried individuals with minimum 3 years of work experience can avail of a home loan of up to Rs. 3.5 crore and self-employed individuals having a business continuity of 5 years can avail funding up to Rs.5 crore. Please note that these figures are only indicative, the actual amounts sanctioned vary on a case to case basis. Use the Housing Loan Eligibility Calculator to know the maximum loan amount based upon your income, tenor, and current obligations.

The documents required for a Home Loan from Saarebank include:
KYC Documents
Identity proof
Photograph
Form 16/Latest salary slips
Bank account statements of the last 6 months
Proof of business continuity (for businesspersons, self-employed)

Both types of home loans have their pros and cons. With a fixed-rate home loan, the interest rate remains constant through the tenor, which allows you to forecast EMIs. Pick it when home loan interest rates are low. For floating rate home loans, the interest rate alters basis economic changes and RBI policy decisions. Choose this variant when you expect rates to reduce in the time to come. Additionally, the RBI mandates that you do not need to pay any prepayment or foreclosure charges if you’re an individual borrowing a floating rate home loan..