Finance
Estate investment in india is what u are seeking and the right finance option that suits your needs to the tee? To help you realise your dream of owning a Supreme Residency, we help you with Housing Finance Companies and Banks to devise loan schemes for our various projects. Our innovatively designed packages will help you get flexible and hassle free financial aid at highly competitive rates of interest along with a host of other benefits and help getting luxury lifestyle residential property.
Builders of residential and commercial properties - Financial feasibility analysis , Our executives will help you in your financial planning, loan procurement procedure and in all legal matters related to the property you choose to buy as we are the builders of residential and commercial properties in india.
After you have made the decision to purchase a home, you will have to decide on which option you will want to use to finance it. Customers have three options for makingpayments towards a home.
* Installment Scheme (Customer Financed):
Under this scheme, the customer pays a percentage of the total price of the home initially and then makes progress payments as the building construction progress e.g. a customer puts 20% as down payment when he books the flat and then pays 10% when the first floor is constructed, 10% when the 3rd floor is constructed and so on. The payment made by the customer are linked to the progress of the building and all payments are financed by the customer himself.
* Installment Scheme (Bank Financed):
Under this scheme, the customer opts for a home loan at the time of making the booking and the bank makes the payments on behalf of the customer. The payments are linked to the progress of the building just like the previous scheme. The customer repays the bank over a longer period of time e.g. 20 years.
* Advance Disbursement Facility (ADF) Scheme (Bank Financed) :
Under this scheme, the bank, on instructions from the customer, pays Supreme the entire value of the apartment upfront when the customer makes the booking. In effect, Supreme discounts all the future payments due from the customer at an interest rate that is higher than the rate of interest of the home loan. Therefore, the customer ends up getting a discount on total price of the home. Consider an example of customer booking a flat of 1000 square foot area at the rate of Rs.2700 per square foot. If he is paying entire money upfront while booking, then he gets Rs.100 as ADF Discount and his costing will be Rs. 2600 per sq.ft. So instead of Rs. 27,00,000 which is the cost of the flat, the flat cost in the ADF scheme will be Rs. 26,00,000, a saving of Rs. 1,00,000. This facility is made available by banks only to reputed builders.
Home Loans
The benefits of taking a home loan:
income tax authorities look with favour upon those servicing a housing loan from specified financial institutions. And, it is up to you to be wise enough to take advantage of this.
Let's start with Section 24 of the Income Tax Act. Icici bank.
Interest paid on capital borrowed for the acquisition, construction, repair, renewal or reconstruction of property is entitled to a deduction. That means you are allowed to deduct an amount equivalent to the total interest payable on the housing loan from your taxable income within the same financial year. This is now a substantial amount. It started off with the Income Tax Department offering Rs 15,000 as the maximum amount eligible for deduction in the case of self-occupied property. This later got doubled to Rs 30,000. It did not stop there. After getting enhanced to Rs 75,000, it was then taken to a limit of Rs 1 lakh. Presently, the limit stands elevated to Rs 1.5 lakh.
So, should you borrow money to acquire, construct, repair, renew or reconstruct property on or after April 1, 1999, you get a deduction of up to Rs 1.5 lakh. The criteria being: the property has to be acquired or constructed by March 31, 2003 and be self-occupied.
When put in figures, this is quite an amount. Assume taxable income of Rs 4 lakh, placing the assessee in the highest tax bracket. Assume interest payment during the first financial year is Rs 1.60 lakh Taxable income stands reduced to Rs 2.5 lakh (Rs 4 lakh - Rs 1.5 lakh being the maximum limit) Total tax amounts to Rs 49,980 (tax of Rs 49,000 + surcharge of Rs 980) Tax saved is Rs 45,900 (tax @30% on Rs 1.5 lakh plus 2% surcharge as the investor is in the highest tax bracket)
That brings us to Section 88 of the Income Tax Act.
You get a 20% rebate on repayment of principal during a financial year. Once again, over the years, the principal repayment eligible for rebate has been enhanced from Rs 10,000 to the current limit of Rs 20,000. Stamp duty, registration fee or other such expenses paid for the purpose of transfer of such house property to the assessee is also considered under this amount. Going back to our earlier example: Taxable income of Rs 4 lakh Taxable income stands reduced to Rs 2.5 lakh Tax before rebate and surcharge: Rs 49,000 (no surcharge is computed as surcharge is applicable on tax payable after allowing for rebate under Section 88) Rebate of Rs 4,000 (20% of Rs 20,000 being principal repayment) Tax less rebate of Rs 4,000 + surcharge @ 2%= Rs 45,900 Tax saved = Rs 49,900 (Rs 45,900 as shown above plus rebate of Rs 4,000)
FAQs on Home Loans
Any person, including Non Resident Indians, with a steady source of income can borrow funds for financing the cost of a flat from housing finance companies and banks.
Yes. Repayment of loan should be made within a period not exceeding 20 years out of inward remittances or out of funds held in the borrower's NRE/FCNR/NRO accounts.
Loans are generally disbursed upto a maximum of 85% of the cost of the flat. The balance 15% cost of the flat is to be funded by the flat purchaser from his own contribution.
Some projects at Supreme are pre approved for grant of home loans by leading housing finance companies and banks. The Supreme sales team liase with the all leading Housing Finance Institutions for processing the loan, documentation and disbursement of loans.
Equated Monthly Installment ("EMI") is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month.
Interest rates vary from time to time and from institution to institution. The current trend ranges from about 9% to 11% pa. The interest calculated either on a daily or monthly reducing or yearly reducing balance.
A fixed-rate housing loan is a loan where the rate of interest is constant through the entire term of the loan period.
A floating interest rate loan is a loan where the interest rate payable is linked to the market conditions such as the bank retail prime lending rate and rises and falls with the bank rate varies. Hence a borrower bears the risk of interest rate fluctuations. Floating interest rates offered are usually lower than the fixed interest rates.
About 5-7 days.
Usally loans are disbursed within 5-7 days after completion of verification by the institution,documentation ( such as handing over of the original agreement for sale\ lodging receipt to the lender) and completion of all relevant procedures and only after proof that the borrowers own contribution has been paid by him to the vendor / builder / developer.
Yes.
- 12. What are the documents required at the time of making an application for a housing loan ?
- * Photographs
- * Proof of age (Passport / License / Voters ID. )
- * Proof of residence ( Ration card / Tel / Electricity bill. )
- * Latest salary slip (proof of income for salaried individuals ).
- * Form 16
- * Bank statements for the previous six months.
- * For self employed, certified copies of balance sheet, profit and loss statement and tax challans / tax returns for the previous 3 years for partnership/private limited companies, the articles of association, partnership deed and details about the firm.
- * For NRIs latest salary certificate specifying, name (as it appears in the passport). Date of joining, passport number, designation, perquisites and salary, photocopy of labour card/ identity card, photocopy of valid resident visa stamped on the passport, photocopy of monthly statement of local bank account, property related documents.