Home Construction Loan: How to claim tax benefits?

Not everyone wants to move into a home built by a realtor. It is because such homes do not meet the needs and tastes of a homeowner. It is where you can avail a housing loan for construction and get large funds. 

But did you know that a home construction loan can also help you enjoy housing loan tax benefit? Yes, that’s possible! Read on and know more! 

What are housing loan tax benefits?

1. According to the Income Tax Act, you can avail of tax benefits on the repayment of the principal amount. The maximum exemption that you can pocket under the interest portion repayment of the loan is up to Rs.2 lakh. 

2. Similarly, the principal portion of your home loan EMI can help you enjoy an exemption of up to Rs.50,000. It is how you can pocket housing loan tax benefits on a home construction loan. 

What are the benefits of a home construction loan?

1. A higher loan amount is available 

As per your eligibility and lender’s terms, you may get an amount ranging into crores. This way, you can build a dream home of your choice. 

2. Instant approvals 

Leading lenders do not let you wait for ages for housing loan approvals. If you are eligible, you can get approval within no time. 

3. Money in your bank account faster 

Once you have the loan approval, the fund disbursement is also not very far. You may get it within hours of getting the loan approval. 

4. Flexible repayment tenor 

Repaying a home construction loan does not mean your outlays should be strained. It is where top lenders may let you spread the loan cost over a longer tenor. In turn, you can repay lower home loan EMIs. 

You can now check out your eligibility for a home construction loan online on a lender’s website and get started.