Can I get tax benefits on a loan against property?
A loan against property is sanctioned against a property used as collateral with a lender. The lender decides the loan amount depending on the property value. Financial institutions usually provide up to 70% of the property value as the loan amount.
The tax benefits that you can avail on the loan against property depends on the end-use of the loan. Read on to find out what section you can avail it under.
- Under Section 37
Under Section 37 of the Income Tax Act, you can get tax benefits on the interest paid for your loan against property
- Under Section 24
Under Section 24, you can get a loan against property tax benefits on the interest paid on your loan if the funds are used for financing your new home. The maximum benefit that you can avail of under this section is Rs. 2 lakh.
Additional read: How to avail tax benefits on your loan against property?
Some loan against property features that you can enjoy apart from tax benefits include:
- High financing amount
Get a high-value mortgage loan to meet your multiple requirements
- Extended repayment tenor
Repayment tenor ranges up to 18 years for easy repayment
- Nominal documents requirement
The documents required for a loan against property are minimal. You can also avail of our doorstep facility to submit the documents
- Convenient eligibility criteria
You can easily fulfil the loan against property eligibility criteria. You must be between 25 years and 70 years years of age if you are salaried, and between 25 and 70 years if you are self-employed to apply for the loan. You must also have income stability and good credit history
- Quick processing
Loans against property are processed within 72 hours* of applying.
Know how to apply for a loan against property today and find the loan amount disbursed to your account within 3 days* after processing.