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  • Home Loan BYTES FROM OUR KITCHEN

    Home Loan For Resale Flats

    Why pay rent month after month, when you can own your own home by paying off monthly EMIs to banks and other financial institutions? If you are looking for a home for immediate possession, a resale flat is the most feasible option. Some of the advantages of going for a resale flat is that it facilitates greater savings, while saving time which would otherwise be spent on waiting for the completion of an under construction flat.

    Impact Of GST On Resale Properties/ Flats

    The Goods and Services Tax (GST) implemented by the government recently has definitely affected the real estate industry. However, not many people have an idea on how it affects resale properties.

    Experts say that GST does not apply to resale properties. However, a seller will have to bear the charges of stamp duty and registration that differ from state to state. It must be understood that although resale of property does not attract GST, resale of a property under construction does. The rate of GST for purchase of new and under construction properties is fixed at 12%.

    In conclusion, a resale property is considered an immovable property and therefore will not attract GST.

    5 Benefits Of Purchasing A Resale Flat:

    1. You can take immediate possession of the flat once your home loan is processed, unless there is renovation and re-furnishing work to be done.
    2. The overall cost incurred from availing a home loan for a resale flat is low compared to a flat/property under construction.
    3. There is a clear idea of the final cost of the resale property.
    4. Property prices are snowballing and if new flats/under-construction flats are bought, the property prices are much higher than a resale flat. A resale flat is more affordable due to factors such as depreciation, age of property, etc. and is the most cost-efficient choice.
    5. Flats available for immediate possession also comes with tax benefits from the payment of the very first EMI itself.

    Resale Flat Loan Eligibility Criteria:

    • The applicant must be at least 18 years old at the time of loan sanction.
    • The maximum age of the home loan borrower depends on the Bank’s terms and rules. Some Banks like State Bank of India, permit applicants to repay the entire loan amount by the age of maximum 70 years.

    How To Apply Home Loan For Resale Property/ Flats

    An applicant can apply individually or jointly for a resale flat home loan. The proposed owners of the residential property can be co-applicants. However, it is not mandatory that co-applicants of a joint home loan for a resale flat have to be co-owners of the same property. Co-applicants have to be close family members like parents, spouse, siblings or children.

    Loan Tenure:

    The term of the home loan depends on details such as customer’s profile, repayment scheme, age of customer at the time of maturity of loan, how old the property will be by the time the loan matures as well as any other terms that are deemed applicable based on prevalent norms of the concerned Bank.

    Home Loan Documents For Resale Flat checklist:

    The following are some of the documents that are commonly asked for by banks, as a part of their documentation and approval process:

    • Duly filled application form.
    • Passport sized photo of applicant
    • Latest 6 months’ bank account statement
    • PAN Card, Voters ID, Passport or Driving License to be submitted as proof of identity.
    • Latest phone bill, electricity bill, property tax receipt, Passport, or Voter's ID to be submitted as address proof.
    • Business address proof should be submitted by self-employed applicants.
    • Documents related to property, like: Agreement of Sale, Sale Deed, Letter of Allotment, Land/ Building Tax paid receipt, Non encumbrance certificate, etc.
    • Copies of approved plan and local body approval

    Tax Benefits In Home Loan For Resale Flat:

    One of the greatest highlights of purchasing a resale flat on home loan is that you can tax benefit once you gain possession of the house/apartment. A borrower can avail upto Rs.1 lakh deduction on the principal amount, under section 80C of the Income Tax Act as well as a tax exemption of up to Rs 1.5 lakh on the interest on home loan, under Section 24B. This makes purchase of property on resale, by availing a home loan, more profitable.

    Major Banks That Offer Home Loan For Resale Flat:

    • HDFC offers custom-made home loan schemes for resale flats for salaried and self-employed applicants. This scheme facilitates immediate possession of a ‘Resale Home’ that meets all your requirements.
    • SBI has been voted as “The Most Preferred Home Loan Provider” by AWAAZ Consumer Awards. The bank offers customized repayment options on resale flat home loan along with unique features such as free personal accident insurance cover, option to avail the home loan as a term loan or overdraft facility, and much more.
    • AXIS Bank is another major home loan provider which caters to the specific needs of those who wish to purchase a resale flat. The home loan scheme offered by Axis Bank is called “Asha Home Loans”. It offers loan for a tenure of up to 30 years and finances 90% of the value of the resale property.

    Loan for Resale Flats Reviews

    • Axis Bank Home Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have been using home loan with Axis bank from past 7 years, they have given me sufficient loan amount, the rate of interest they have charged me was nominal,they have charged me up to 10% and the processing fee they have charged me was nominal, i have took this loan for 20 year , there overall service is good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 21, 2019
    • Tata capital Home Loan
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I have been holding my home loan with tata capital, they have given me sufficient loan amount and the rate of interest they have charging me was nominal for me they have charged me up to 9.6% and they have charged me processing fee or not i have no idea,there is some issue in electronic emi, like i have paid the emi due but still it is not showing in the transaction, there customer service is not up to the mark, need to concentrate with electronic devise, so that there will be no mis understanding .
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 21, 2019
    • DHFL Home Loan
      "Bad experience"
      0.5 2.0/5 "Expected more"
      I have been using my home loan with DHFL , they have given me sufficient loan amount , and the rate of interest they have charged me up to 9.5% which was bit high for me and even processing fee they have charged me was nominal,there support team is not customer friendly, they do not resolve my issue, and the loan amount they have given me after 40 days after getting approval, they have taken 40 days interest as well, i asked them regarding this they said it is necessary to pay this charges,i have bad experience with this bank.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Jan 20, 2019
    • LIC Housing Home Loan
      "Good Financial service"
      0.5 4.0/5 "Great!"
      I have taken Home loan from LIC HOME FINANCE They Took some time for the approval , where the rate of interest is high for first time and as i requested the have made it to nominal with nominal processing fees . I make the payment through the ecs process . Am satisfied with their customer service and response .
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 20, 2019
    • HDFC Limited Home Loan
      "Superb service"
      0.5 5.0/5 "Blown Away!"
      I have taken home loan with HDFC LTD 11years back. Interest rate is nominal in the market, and my loan amount is 57lakh and it is satisfactory. There is no hidden charges. I use to pay 68555 as EMI per month . Customer service response is good. I am very happy with their services .
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 20, 2019
    • SBI Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience i had with this loan has been good and the loan amount whcih they had been providing so far has been quite good. The loan amount which they had provided has been sufficient and there was no processing fee or any other charges which they had made. The interest rate with them has also been less when compared with the market rate.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 20, 2019
    • SBI Home Loan
      "They need to improve more "
      0.5 3.5/5 "Pretty good"
      I have a home loan with SBI . The service was not up to the mark . The loan was provide on time and the documentation was collected on time too. I received the loan amount as expected. The tenure period is 30years . I got option of preclosere and it is very nominal . The process to get the loan is fine.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 20, 2019
    • HDFC Limited Home Loan
      "Good loan services"
      0.5 4.0/5 "Great!"
      I have taken my home loan from HDFC ltd. 8 years ago, i have purchased this loan. Since the interest rate is low, i have selected the HDFC. They have given me a rate of Interest of 9.25% and they have charged me a processing fee of Rs. 2500. I have applied the loan amount of RS. 12 lakhs and they have sanctioned the loan on time.
      Was this review helpful? 0
      , indore
      Reviewed on Jan 19, 2019
    • Axis Bank Home Loan
      "Average"
      0.5 3.0/5 "Satisfactory"
      My home loan was approved with AXIS BANK . The loan amount is very satisfactory and the process is very hassle while getting the loan initially. Customer support is not so good , the response is very slow . The tenure period is 10 year and it is sufficient yo me .
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 19, 2019
    • HDFC Limited Home Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I have applied for the home loan with HDFC LTD , the tenure period is 20 year .The rate of interest is nominal. The process was easy in HDFC BANK to take the home loan. The processing fee is okay. They gave the foreclose option also with this bank . Loan amount is good .
      Was this review helpful? 0
      , kolkata
      Reviewed on Jan 19, 2019
    • Central Bank of India Home Loan
      "Average"
      0.5 3.5/5 "Pretty good"
      I got good rate of interest of home loan through CENTRAL BANK OF INDIA . The loan amount is good but some what i was expecting more . The processing fee is nominal here and they gave sufficient tenure period . Getting the loan through nationalized bank is very difficult it take much time and the process is too lengthy . Branch manager is not so friendly .
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 19, 2019
    • HDFC Limited Home Loan
      "Good Loan services"
      0.5 4.0/5 "Great!"
      My home loan was purchased with HDFC in the year of 2017 October. I have applied the loan amount of Rs. 33 lakhs and they have sanctioned the same. I have got the interest rate of 9.15% and it slashed upto 8.95%. Total tenure period of the loan is 18 years.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 19, 2019
    • LIC Housing Home Loan
      "Not satisfied with the Service"
      0.5 1.0/5 "Really Bad"
      I got my housing loan from Lic housing finance . Am not that much satisfied with rate of interest which is high one with high processing fee for the documentation and approval The customer service and response is not that much good. It took more days for the documentation and approval process. Where i make the payment through Ecs.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 19, 2019
    • HDFC Limited Home Loan
      "Should be transparent"
      0.5 5.0/5 "Blown Away!"
      I felt the interest rate is bit different when compared to nationalized bank, I would say private sectors are hiding something , but nationalized are transparent. I took the loan amount around Rs.28 lakhs for the tenure of 15 years, the interest rate is floating one.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 19, 2019
    • SBI Home Loan
      "Good in Service"
      0.5 3.5/5 "Pretty good"
      I had taken a Home loan with SBI and at the time i applied for home loan my application was processed on time , it was processed with in 15 days. The rate of interest is reasonable and the overall services were satisfactory. I also carry a account in SBI.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 19, 2019
    • DHFL Home Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have a home loan with DHFL INSTITUTION . I got option of preclosere and it is very nominal . The process to get the loan is fine. The rate of interest is fine even processing fee nominal . The loan was provide on time and the documentation was collected on time too. I received the loan amount as expected.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 18, 2019
    • ICICI Bank Home Loan
      "Useful for private employee people"
      0.5 4.0/5 "Great!"
      In 2006, I have taken my housing loan with ICICI Bank. During that time, they have assured me a lower interest rate hence i have chosen them. After 1 year, they have increase the interest rate which is higher than other bank hence i have done the pre-closure. Processing fee and interest rates were very high.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 18, 2019
    • Bank of Baroda Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The experience i had with this loan has been quite good where the process was very simple and smooth. The loan amount which they had provided has been sufficient and the interest rate which they offered me was very less when compared with the market rate. The charges which they had made has been nominal as well.
      Was this review helpful? 1
      , navi mumbai
      Reviewed on Jan 18, 2019
    • Indiabulls Home Loan
      "Good loan services"
      0.5 4.0/5 "Great!"
      In March 2018, I have applied the home loan with India bulls. My friend has recommended about the indiabulls loan. They have given me a interest rate of 8.35% and I'm happy with it. I have received the loan in 20 days. I have no idea about the processing fee. Total tenure period the loan is 20 years. I am making the EMI through ECS.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jan 18, 2019
    • Canara Bank Home Loan
      "Very Good Service"
      0.5 4.0/5 "Great!"
      It was quite a good experience with this home loan, the interest rate with them was a little high initially but it has been reduced afterwards. There has not been any hidden charges which they had made and the processing fee has been very nominal. Their customer support has been excellent in guiding in everything.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 18, 2019
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