[2021] Home Loan - Home Loan Insurance Policy VS Term Plans

Why Need Home Loan Insurance and which policy is best for home loan [From Bajajfinserv - Housing Loan]. If you are thinking of buying a house in the future or you are planning to build a house, you need to take home loan from any bank. At a very low interest, many Banks are available nowadays in the market. Financial services that provide you. Guys I will advise you to Take Home Loan (SBI) from a government financial institution as interest is very low and you pay more interest if you take home loan from a private financial institute. When an institution gives a home loan [Home Loan: Apply Housing Loan @ 6.65% Interest Rate] whether it is government or private, first of all check whether the person he is giving a home loan is required to pay home loan in a limited time. Friends when you go to bank to take home loan [Home Loan: Apply Housing Loan Online at 6.75% Interest] he try to sell you home loan insurance policy [Home Loan Insurance: A Simple Way to Protect Your Home] also.

Home Loan Insurance Policy VS Term Plans

Home Loan Insurance Policy VS Term Plans
Home Loan Insurance Policy VS Term Plans
Benefits Of Home Loan - Tax Deduction

[2021] Benefits Of Home Loan - Tax Deduction 


I will let you know that whenever you get a Home Loan from a bank financial institution "Should you take a home loan from a bank or an NBFC?"you can buy a home loan insurance policy along with it. There is a lot of difference in home loan insurance & home loans. home loan insurance proves much better for you. if you don't know, I tell you in shortcut what home loan insurance. Home loan insurance and home loan there is huge difference as I told you earlier. now we know why to take home loan insurance.

Suppose, you have obtained home loan insurance from a bank or financial institution and you could not pay your family money during this period and you could not pay your home loan money in that case, in case you have taken home loan insurance some Insurance company will have to pay money to the bank.

  • When you get a home loan from a bank, the bank executive try to sell you a home loan insurance policy with a home loan. but I can tell you that taking a home loan insurance policy with a home loan is not necessary. You can take only home loan, but in mostly cases bank officials tell you that we will not approved your loan until you have taken a home loan insurance policy.
  • Taking home loan insurance policy with home loan is not a compulsory but still bank officials sell us home loan insurance policy with home loan, where will we pay the premium of the home loan insurance policy which we have taken but let me tell you one thing you must take home loan insirance, suppose you die tomorrow due to which you could not pay your home loan, so the responsibility in this case falls on your family member which is not a good one.
  • As I told you earlier when you go to take home loan in a bank he also sell you home loan insurance with homeloan. You pay home loan premium when you get a home loan from a bank. now you have to pay premium together. bank gives you a separate loan which is personal loan or we can also call a top up loan. 
  • Here I can explain you from an example home loan & home loan insurance suppose you went to a bank to take $2000000 home loan, bank told you also to take home loan insurance, it' s wrong bank 's we don' t want a home loan insurance policy with a home loan. Friends we have taken home loan of inflation 2000000 & loan of home loan insurance policy (100000). we have taken two loans from bank & now we have to pay 2 loan EMI (EMI CALCULATE FOR HOME LOAN, CAR LOAN, PERSONAL LOAN.).
  • If you don 't know much about home loan, you can help with a financial institution, get help from home loan insurance, or get home loan insurance with your bank as well, but I will confirm you where to get a home loan insurance with a home loan team, insurance policy with a government bank. if you have a home loan from a government bank (List of Government banks in India 2021), you should also get a home loan insurance policy with a government bank, If you are getting a home loan from a private financial institution. Then it may prove to be costly for you.
  • The cheapest home loan insurance for you can get term insurance on Policy Bazaar there you can get a lot of home loan insurance companies view. You can get a compare and then get home loan from any company. Guys, You can take home loan insurance from any insurance company and then fill every month as EMI Premium.

Many people when they get home loan from a bank don't realize that the home loan insurance policy is with their.

Guys The 4th point is of economics time, Acc to Economics Times - People who had recently availed the home loan as well as the home loan insurance policy from the company and caused death of those who had availed the home loan, the insurance company rejected their claim. So now those who had taken home loan have been compensated to their family. bank from which abrash financial institution was just home loan. Now his family has to pay him a rupee. Friends, If your death is caused by a specific illness, such as you have had cancer or you have had diabetes and you have sudden death, or you have had a heart attack, Personal Accident, your home loan will be covered by insurance companies. If you have a home loan insurance policy and your death is due to covid -19, the insurance policy will not claim. Guys do you know why this happened? Here In case, Lots of home loan insurance policy.

Home loan insurance policy is more expensive than term insurance plan. There are many experts' advice is that you should purchase term plans as it has more advantages than home loan insurance as home loan insurance policy has many disadvantages.

When go to take home loan you must compere home loan insurance policy VS TERM PLANS (Term life insurance). I hope this article will be very helpful to you.Buy Best Term Insurance Plan & Policy Online in India 2021

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[2021] Benefits Of Home Loan - Tax Deduction

If you want to take a home loan then this is the right time for you because at that time you are being given home loan at very low interest rate. Usually the big banks that are there give home loan at 7% interest rate or also you get tax benefit from 3 years. Friends, if you try to save tax from 3 years, then you can claim tax of 4,18,661 every year. Because of this, your tax can be reduced by up to Rs 1,30,622. Friends, today we will tell you in this article how you can save tax by taking home loan. Friends, the government gives us a chance to claim tax on home loan in 3 ways.

3 Types Of Tax Benefit

  • Tax decuctions on Principle payment U/S 80C
  • Tax decuctions on Interest Payment U/S 24B
  • Tax decuctions on Extra Interest U/S 80EEA

Benefits Of Home Loan - Tax Deduction

Note - These 3 types of tax benefits have their own limit, about which I will tell you in details. But before that the resolution of the interest payment or principal payment is very important. Because tax deduction is taken on this basis. After taking a home loan, you also have to pay it. You pay the home loan in installments. You have to pay EMI every month, the amount of EMI is same every month. But this EMI is considered to have 2 parts. In which the first part is the principal payment, the second part is the interest payment.

In the initial years, the interest part in EMI is very high, but later on the interest part is less and the principal payment part increases, usually the bank itself gives you the schedule of EMI, in which it is clearly written how much part How much went to the principal payment and how much went to the interest payment.

To claim tax deduction, you have to look at the interest payment or principal payment separately. We have fixed the EMI for you on a spread sheet

Benefits Of Home Loan - Tax Deduction
Benefits Of Home Loan - Tax Deduction

In this, we assume that a person has taken a loan of Rs 4500000 for 20 years or the interest rate of the home loan is 7%, the EMI of the month on this home loan will be Rs 34888. Both the interest and principal are part of this EMI. In the first month, the interest of 4500000 was Rs 26,250, after leaving the EMI, Rs 8,638 is left in it. Now this amount will be used for the principal payment.

8,638 which is being used towards the principal payment will reduce the outstanding balance for the next month. Meaning that the outstanding principal balance in the month of May will be Rs 44,91,363. Now its 1 month interest will be Rs 26,200. If you reduce the interest in EMI, then an amount of 8,689 will be left for the principle payment. If we look carefully, as we move forward, the interest payment amount is decreasing or the principle payment amount is increasing.

To claim the home loan tax deduction, every year we have to look in our EMI schedule to see how much money has gone towards interest payment or principle payment.

As you can see in the image, EMI of 4,18,661 amount has been filled in this schedule for the year 2021-2022, out of which Rs 3,11,609 has gone in interest payment or the rest in principal payment.

Now I will tell you how tax deduction is available on the principal payment we make every year on the home loan. Friends, the government gives the benefit of tax deduction on many types of investments under section 80C. The principle payment of the home loan is also one of these i.e. you will get a tax deduction for the amount you spend on the principle payment of the home loan.

Apart from this, you will also get tax deduction under this section in lieu of the expenditure on registration or Stam duty.

Note - Keep in mind that under section 80C, tax deduction is available only on the total amount of 1.5 lakhs. This 1.5 lakh includes PPF, EPC, ELSS, Insurance, NPS, NSC, SCSS.

Tax Deduction U/S 80C

  • Home Loan EMI principal payment
  • Registration and payment of stamp duty
  • Maximum claim amount - 1.5 lakh
  • Other Investments - PPF, EPF, ELSS, Insurance, NPS, NSC, SCSS.

If you are already availing tax deduction under this section, then the tax deduction for availing a home loan is reduced.

Equivalent tax deduction on home loan?

  1. You can take a tax deduction on the total interest payment up to Rs 3.50 lakh. The first tax deduction on interest payment is available under section u/s 24B.
  2. Under this section, if you are taking a home loan to build or buy a house, then you will get a tax deduction against the interest paid. But there is also a limit to the tax deduction. You can claim tax deduction on interest payments up to a maximum of Rs 2 lakh.
  3. Friends, there are also many conditions of tax deduction. This tax deduction will be available only when you have got possession of the house. If the property is under construction, then the right of the house to claim tax deduction will have to wait. Once you get the rights, you can also claim tax against the construction period.
  4. Another condition for claiming tax deduction on home loan interest is that the house should be built within 5 years. If it takes more time to build the house, then the limit for deduction of interest payment will not be 2 lakhs but only 30000.

2nd. Tax Deduction u/s 24B

  • Interest Payment Of home loan EMI
  • Maximum claim amount - 2 lakh
  • Only after the posession of house
  • Construction shoud be completed within 5 year

What is the way to claim tax deduction in under construction property?

Friends, the rule is that you can claim tax deduction only after you get the right to the house, but it can take 3-4 years to build a house and even during this time you pay the EMI and the interest paid in the beginning is high if In such a situation, you can claim additional tax deduction in lieu of the previous deduction after getting the entitlement.

You can claim additional tax deduction in equal parts over the next 5 years.

Suppose friends, your house is built in 4 years. 2017-2021. And during this time you have made a total interest payment of Rs 7.5 lakh, the decision to deduct tax on this interest payment can be taken only after the house is built. You divide this 7.5 lakh amount into 5 equal parts. And on the amount that comes, you will get a separate tax deduction every year. That is, you will get an additional tax deduction of Rs 1.5 lakh for a further 5 years.

Now we will talk about 3rd type of tax deduction.

This tax deduction is for those people who do not have their own house or are taking home loan for the first time. This deduction is given under U/S 80EEA. Recently, tax deduction has been included in 2019. You can test this deduction when your interest payment is more than Rs 2 lakh per annum. In such a situation, you can claim tax deduction under this section on extra interest payment.

  • Under this section, a deduction can be made on interest only up to a maximum of Rs 1.5.
  • Introduced Time Buyer in 2019
  • If the annual interest payment exceeds 2 lakhs
  • Tax deduction is available on additional interest payment.
  • Maximum claim amount - 1.5 lakh
  • There are some conditions for this tax deduction as well.

This is only for affordable housing. Not for expensive homes. For this the government has fixed the limit of home loan.

The home loan amount should not exceed Rs 45 lakhs for this deduction. Not only this, the government has also decided that the carpet area of ​​the house should not exceed 90 square meters. And if your house is in metro cities then the area of ​​your house should not be more than 60 square meters.

  • Only for affordable hounsing
  • Maximum Home loan amount - 45 Lakhs
  • Maximum carpet area - 90 SQ M
  • Maximum carpet area in metro cities - 60 SQ M

Apart from this, as I told you, this deduction is only for the first time home buyer. Or the home loan should be taken from a finance bank, or finance company only.

At present, the tax deduction under this section is for property purchased from 1st April 2019 to 31st March 2022.

Now I will tell you practically how much tax benefit we can avail on home loan?

home loan tax benefits
home loan tax benefits

Suppose, Rohit's earning year is Rs 16 lakh. And it comes in 30% income tax slab rate. Rohit has to take home. Or take a home loan of Rs 45 lakh so that he can get maximum tax deduction benefit. This loan of Rohit is for 20 years or interest rate is 7%, so Rohit's EMI is divided by Rs 34,888. In this way we have to pay Rs 4,18,661 in a year. Out of this entire payment, Rs 3,11,309 has to be paid for interest payment or Rs 1,07,053 for principal payment. Rohit claims tax under section 80C in lieu of the principal payment amount. Now only our interest saves Rohit out of this Rs 200000 claims tax deduction under section 248 and remaining Rs 1,11,609 Rohit claims tax deduction under section 80E. In this way Rohit gets a tax deduction against his entire EMI, due to which his taxable income will come down from Rs 16 lakh to Rs 11,81,339. Rohit's tax will also come down by Rs 1,30,662 due to work in taxable income.

[2021] How To Take Home Loan From SBI (State Bank Of India)

Today we will tell you how to take a home loan. Friends, today we will teach you how to take home loan from India's best bank sbi.If you want to take a home loan and that too at very low interest rate and also want to see the flexibility of repayment. Here State Bank of India can become the bank for you with the lowest processing fee which will provide you home loan. And at the same time, taking home loan away will also give you good facilities / services.

Friends, here I have told you step by step with images, how you can take home loan from State Bank Of India.

First of all you visit Home Loan SBIAs soon as the website will open, some products will be shown in front of you like:- Take Online Personal Loan For Reliance Money

Take Home Loan From SBI
Take Home Loan From SBI

  1. SBI Regular home loan
  2. SBI Balance transfer of home loan
  3. SBI NRI Home loan
  4. SBI Flexipay home loan

[2021] How To Take Home Loan From SBI (State Bank Of India)

All you have to do is click on Regular Home Loan. Now you have to read through regular home loan features, eligibility, interest rates & fees, documents required, etc. To take home loan from SBI, you have to fulfill all the conditions, policies only then you are eligible to take home loan from State Bank Of India.

Feature's

  • Home Loan products to suit every customers need
  • Low Interest Rates
  • Low Processing Fee
  • No Hidden Charges

No Pre Payment Penalty - When you make the payment of your loan, you do not have to pay any extra charges. How much rupees have you taken on your loan? You can make that much money. You do not need to pay any extra charges.

Interest charges on Daily Reducing Balance - Suppose you have taken a loan of 5 Lakhs and after 2 years your loan is left for 3 Lakhs then your interest will be applicable only on 3 Lakhs . This is what we call Daily Reducing Balance.

Repayment up to 30 years - You can repay your loan up to 30 years.

  • Home Loan Available as Overdraft
  • Interest Concession for Women Borrowers

Eligibility -From which people are eligible to take home loan from State Bank of India.

  1. Resident Type: Resident Indian
  2. Minimum Age: 18 years
  3. Maximum Age: 70 years
  4. Loan Tenure: up to 30 years.
  5. Loan Amount: Click Here

1. The person who is taking the loan is from India country. If you living from any other country then you will not get the loan.

2. Your age should be at least 18 and more than 70.

3. You can take a loan for 30 years.

4. According to your eligibility, you can check the loan amount, how much loan can you get according to your eligibility.

Interest Rates & Fees:- 

  • *Interest rate will vary as per the risk score of the customer
  • **Based on LTV (Life Time Value) of the Customer

Consolidated Processing Fee structure (including Advocate Fee and Valuer Fees) will be as under:

“0.40% of the loan amount plus applicable GST subject to a minimum of Rs 10000/- and maximum of Rs 30000/- plus GST. 

1 year ago this processing fee was 0.35%, today it has become 0.40% in June 2021.

0.40% includes your gst tax.

Example - Suppose you have taken a loan of 5 lakhs, then it will pay your processing fee on your loan. No matter how much loan amount you take, your processing fee will not be charged more than Rs 30000.

  • Minimum Processing Fees - 10000
  • Maximum processing fees - 30000

However, for builder tie up projects where individual TIR and Valuation Is not required: 0.40% of loan amount subject to max. recovery of Rs. 10000/- plus applicable tax.

And, If TIR (Title Investigation Report) and Valuation is required, then normal charge as mentioned above will be applicable.

Document Required:- 

List of papers/ documents applicable to all applicants:

  1. Employer Identity Card
  2. Loan Application: Completed loan application 
  3. form duly filled in affixed with 3 Passport size photographs
  4. Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card
  5. Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card

Property Papers:

  1. Permission for construction (where applicable)
  2. Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
  3. Occupancy Certificate (in case of ready to move property)
  4. Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
  5. Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property)
  6. Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller

Account Statement:

  1. Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s
  2. If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
  3. Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:
  4. Salary Slip or Salary Certificate of last 3 months
  5. Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept.

Income Proof for Non-Salaried Applicant/ Co-applicant/ Guarantor:

  1. Business address proof
  2. IT returns for last 3 years
  3. Balance Sheet & Profit & Loss A/c for last 3 years
  4. Business License Details(or equivalent)
  5. TDS Certificate (Form 16A, if applicable)
  6. Certificate of qualification (for C.A./ Doctor and other professionals)

If you fulfill all the conditions then you have to click on apply now. Now you have to fill 3 steps

Get Eligibility (Relationship with bank)

Do you have an existing relationship with sbi - If your account is already in Sbi bank then do yes or else no.

Type of relationship - Do you have a home loan account or a salaried account or a different account "select one".

Account no. - Your account no. Enter the one you have selected.

Enter mobile no. Enter the number given in your bank.

Check box par tick kare. I hereby authorize State Bank

& Last Click SUBMIT.