One more thingh should be known before borrowing as to what happens when a EMI cheque is bounced on presentation? What actions and cost follow?
Many bank not only charge exorbitant amounts as "cost" but also resort to unethical practice of sending recovering agents who indulge in unlawful and unethical practice to ensure recovery?
This is done by some of the Pvt. Banks and NBFCs. Nationalised Banks are quite reasonable in this regard.
Most banks these days also provide insurance on home loans against a single premium payment or a regular premium payment. The insurance safegaurds the borrower/heir from repaying the loan in case of any contingencies.Some Insurers also repay the interest which has been paid till date.
RE:Insurance of Loan Principal.
by adroit on Sep 25, 2006 09:59 AM Permalink
This would be useful:
1) Liability insurance is not needed if the property is bought as Investment.
2) The liability insurance, in most cases, gives accidental death cover only. Thus, in a sense, the liability is not fully insured. They also charge you a lot for the same. So don't go for such cover.
3)The better alternative is to go for Term Plan or ULIP (with minimum premium) from some Life Insurance Co.
Dear Rediff Thanks for the information provided regarding EMI.
Can I get further information, How to calculate EMI if I know Amount of loan, Interest rate & total years after which the loan will be paid to the bank?
Is there any simple mathematical formula to calculate EMI.
My self and my friend interested in applying DDA scheme 2006 jointly. Both are central government If yes give the details there of for IT rebate for the both. Thank Q Shanker
RE:IT rebate
by RAKESH MILWANI on Sep 17, 2006 01:09 PM Permalink
The days of Income tax rebate on loan are history. There is no provision for rebate on any type of investment / subscription. However, if the house is for personal use and residence, you are entitled to following benefits.
1. Interest on housing loan upto Rs. 150000 is allowed as deduction from your income and your total income would be reduced to that extent. However if the house is given on rent, this limit would not apply and entire interest paid on loan would be allowable as expenditure.
2. Repayment of Housing loan upto Rs. 100000 would be allowable as a deduction from your income under section 80C of the Income Tax Act, 1961. This limit of Rs. 100000 is inclusive of NSC, PPF, LIC premia, Infrasturcture bond, E.L.S.S. etc. However this benefit would not be available if the house is given on rent.
