At Modispaces, buyers are assured of transparency in design, carpet area, pricing, title and on- schedule delivery.
All project approval documents are available for verification to ensure stress-free purchase.
Our dedicated Sales Team will be happy to help you.
Call : – +91 80 80 80 9377
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Things to know before buying a property

Housing loans and how to avail them

Tax Benefit Guide and

Things to know before buying a property

Carpet Area – It is the actual usable area inside the flat as per the IOD.

Built Up Area – It is the actual area of the flat including the walls

Super Built up Area – It is generally the Total Area Constructed in the building divided proportionately to the number of flats. It has no benchmark calculation, but the accepted industrial norm is between 60 – 80% addition on Carpet Area.

Eg. 1000 Sq. ft. Carpet Area = 1150 Sq. ft. Built Up Area = 1720 Sq. ft. Super Built Up Area

  • PAN Card
  • Photo Id with Address Proof
  • 2 * Photograph

Stamp Duty – As per Govt. norms.

GST – As per Govt. norms.

Registration Charges – As per Govt. norms.

In case of a ready property (with OC) – As per Govt. norms.

Housing loans and how to avail them

SECTION 1 - Eligibility

When applying for loan as an individual, the following criteria apply:

  • You must be at least 21 years of age when the loan is sanctioned
  • The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier
  • You must be employed or self-employed with a regular source of income

If applying for an office premise loan:

  • The loan can be for the purchase/ construction/ extension of a non-residential property
  • A loan for renovation or improvement will be given only at the time of acquisition of property
  • Professionally qualified and self-employed individuals can apply with a minimum 3 year’s work experience

A number of factors are taken into account when assessing your repayment capacity. Your income, Age, Number of dependents, Qualifications, Assets and Liabilities, Stability/ Continuity of your employment / Business etc.

Yes, there are ways by which you can enhance your eligibility:

  1. If your spouse is earning, add him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there are any co-owners they must necessarily be co-applicants.
  2. Did you know that your fiancée’s income can also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, will be done only after you submit proof of your marriage.
  3. Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility.
  4. While there is no need for a guarantor, it could be that having one might enhance your credibility with us. If so, our loan officer would provide you with the necessary details.
  5. The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each loan.

Also, in few cases, when the Bank looks at the Total cost, Registration charges, Service Tax, VAT, Transfer Charges and Stamp Duty costs may also be included.

SECTION 2 - Documentation

  1. Passport size photograph.
  2. Age verification: PAN card, Voters ID, Passport, License.
  3. Bank statement for the last six months.
  4. Income Documents e.g. latest Form 16, Certified IT returns for latest 3 years
  5. Admin fee
  6. Loan enclosure letter

These are the documents required for sanctioning a loan. You may be asked to submit further legal documents if required by the Bank or its approved lawyers.

NOTE: Do retain photocopies of all documents being submitted by you.

SECTION 3 - Disbursement

Your loan will be disbursed after you identify and select the property or home that you are purchasing and on submission of the requisite legal documents.

While you may be under the impression that the list of documents asked for is rather extensive, please note that it is for your own good. Each and every single document asked for will be verified and checked to ensure your safety.

This may take some time but we want to ensure a clear title and will complete all the legal and technical verifications to ensure that you have full rights to your home.

The 230 A Clearance of the seller and/ or 37I clearance from the appropriate income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by Bank.

The disbursement will be in favor of the builder/seller.

  • Loan Agreements
  • Disbursement Requests
  • Post-dated cheques

SECTION 4 - Repayment

The repayment tenure varies according to the type of loan:

  1. Home Equity Loans – Maximum loan tenure of 15 years.
  2. Office premise loan – Maximum loan tenure of 15 years.
  3. Home loan- Maximum loan tenure of 30 years.

All loan repayments are done via equated monthly installments (EMI).

An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.

EMI payments start from the month following the month in which the full disbursement has been made.

The EMI is to be paid every month through post-dated cheques (PDCs) or direct deductions from your salary. If you are opting for PDCs, then you will have to provide 36 upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, no problem, there are some flexibilities of dating the cheques, which depends on that financial institution’s rules & regulations.

In the case of a bounced Cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 – 7 working days.

In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

The first PEMI is payable by Cheque by the end of the month in which the disbursement is made and each subsequent PEMI at the end of every month till the commencement of EMI.

EMI payments start from the month following the month in which the full disbursement has been made.

SECTION 5 - Application Process

The moment you decide to buy a home, you can put in your application. Yes, you can apply for a loan even before you have selected the property. The property need not even be in the same city where you are residing.

Should there be a change in your financial status or plans, you can withdraw your sanction within 6 months of approval.

Tax Benefit Guide and Insights

  • As of April 1, 1999, interest paid on capital borrowed for the acquisition, construction, repair, renewal or reconstruction of property is entitled to a deduction.
  • You can save an amount equivalent to the total interest payable on the housing loan from your taxable income within the same financial year up to Rs. 2.5 Lakhs.

So, assuming taxable income of Rs 15.00 lakh & Interest of Rs. 3.00 lakh

  • Interest payment during the first financial year is Rs 3.00 lakh
  • Taxable income stands reduced to Rs 12.5 lakhs (Rs 2.5 Lakhs being the maximum limit)
  • Tax saved is Rs 76,500 (tax @30% on Rs 1.5 lakh plus 2% surcharge as the investor is in the highest tax bracket)
  • If you purchase a flat in a ready-for-possession property (with OC), you get a GST waiver. This saves you almost 12% Tax.
  • Great way to invest capital gains money in such properties and avail waiver.

Income tax deduction on taking home loan from registered banks.

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