Tax Benefit on Loan Against Property

When you’re mortgaging your property, you get some eligibility to get some income tax benefits. Read this article to know about how to get tax benefits on loans against property. Loan against property is a good option and is very simple and clear. This kind of loan is sanctioned after pledging your commercial or residential properties on collateral. Loan against property is a secured loan option and is a long- term commitment. It provides funds for multiple needs as well. One can easily get the loan against property from any good bank by mortgaging their property to get the loan amount approved (depending on the current value of your property). The value generally falls around 70%. The other major factor that needs to be considered is that both salaried and self employed can claim the tax benefits on the loan against property. Here are some of the points which will make you more clear :  Also checkout loan against property reviews

Tax Benefit Under 24(B): under this section you are eligible to avail the loan against property amount only if you are using it to fund your new residential house. Salaried people can get the benefit of this. And the maximum amount you can avail is upto2 Lakhs. If the funds borrowed are used in some other things like marriages, education etc, then it cannot be claimed.  

Tax Benefit Under Section 37(1): under this section tax deductions are applied only if it is used for business purposes. Some features of loan against property that one can enjoy apparat from the tax benefits: 

Loan Amount: One can get the loan amount upto5 crores against the property but it depends upon the market value of that property. LOAN INTERESTS RATES: The loan against property is not only a secured loan but the interest rates are also low and hence lowers the total EMI and also the financial burden over someone. 

This is a long term loan and goes up to20 years which also results in less financial burden over someone. 

Approval Process: the approval process of loan against property is easy and secure compared to other unsecured loans. Less requirement of documentation providing doorstep facility as well. 

Different Properties Options: loan against property also offers different properties options, one who is taking this loan will have options for properties like commercial property, self-occupied house, residential property or a piece of land. This makes taking the loan easier and also one can utilize the property efficiently. Also, the borrower can continue to use the property while availing the funds against it. Isn’t that crazy? 

No Prepayment: the pre- payment is generally not charged for the loan against property. This makes it more convenient for the borrowers to take that loan. 

Eligibility Criteria: there are differences in the eligibility criteria for the salaried and businesses individuals but it is easy to meet. One must be between 33 and 55 years of age if you are salaried and between 25 and 70 years of age if you are self-employed.

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