A loan against property is a secured financial instrument that allows individuals to obtain a sizable loan amount by mortgaging their immovable and commercial assets. Further, applicants can even secure up to 70% of the value of the property as a loan amount. Additionally, borrowers are even eligible for tax benefits on property loan under certain circumstances.
Tax benefits on loan against property
Mentioned below are some of the tax benefits that a borrower can avail of a LAP:
Tax deductions under the Section 37(1)
A candidate can claim tax benefits on the processing fees, documentation charges, and interest paid under Section 37(1). However, the loan amount must be used for business expenditures and not for any capital or personal purpose.
Tax benefits under Section 24(B)
If the borrower is salaried, he/she can claim up to Rs. 2 lakhs in the form of tax deductions. Nevertheless, the borrower must use the fund to buy a new residential space.
Other benefits of loan against property
A loan against property offers several other benefits, such as:
The online property loan EMI calculator allows candidates to check their monthly instalments and plan their expenses accordingly.
Once a candidate meets the loan against property eligibility criteria, he/she can use the fund for professional or personal needs without any obligation.
This credit instrument comes with fast loan disbursals, minimum documentation, and several features, such as tax benefits on loan against property. Further, with this facility, one can get a high loan amount as they keep a property as collateral.
%20(1).png)
No comments:
Post a Comment