Finance Minister P. Chidambaram yesterday announced Budget 2013 with some good news to common man who are looking to buy their first home with financial support of home loan.
Union Budget 2013 has increased the interest exemption limit on home loans from Rs 1.5 lakhs to Rs 2.5 lakhs for the home loan upto Rs. 25 Lakhs deductible under section 80EE.
Few things to keep in mind for availing additional tax benefit under section 80EE:
- Only available for first home loan i.e. it should be your first home loan.
- Loan Amount should be less than Rs. 25 lakhs.
- Loan must be taken in Financial Year 2012-13.
- Property for which loan is taken should be self occupied.
However, the problem is that if you are going to have an interest of Rs 2.5 lakh on home loans you would have to reduce your tenure. So, make sure you take home loans for a shorter duration.
Here is a ready reckoner on the cheapest home loan rates offered by banks. Look out for processing and other fees though.
Click to know benefits of the Home loan.
|Home Loan Interest Rates|
|Bank Name||Interest rate (Floanting Rate)||Processing Fee||Prepayment Charges|
|State Bank Of India||9.95%||Up to 25 lacs : 0.125% of loan amount minimum Rs.1000/- 25-75 lacs : Rs.3,250/- 75 & above : 5,000/-||Nil|
|ICICI Bank||Scheme I :10.25% (Fixed 1 yr) Scheme II : 10.25% (Fixed 2yrs) Scheme III : 10.50% (Fixed 3yrs) then 10.25%||0.50% of loan amount upto 1 crore||N.A|
|HDFC Ltd||10.15%||0.5% or maximum 10,000+service tax (12.36%)||No prepayment charges shall be payable for partial or full prepayments irrespective of the source|
|HSBC Bank||10% to 13%||1% of the loan amount applied for, subject to a minimum of Rs 10000 plus service tax.||Nil|
|LIC Housing||Scheme I : 10.25% (Fixed for 2 yrs)
Scheme II : 10.70% (Fixed for 3 yrs)
|Up to 50 lacs : 10,000 +(Service tax)
50 lacs & above : 15,000 +(service tax)
|AXIS Bank||10.25% (Upto 25 Lacs), then 10.50%||1% of the Loan Amount||Nil|
|IDBI||10.25%||Up to .50% of loan amount||If Balance Transfer then 2% Otherwise Nil|
|Indian Bank||10.20%||Waived upto 31-03-2013||Nil|
|Standard Chartered||9.99% (Upto 25Lacs), then 10.40%||Rs.7500/- + Service tax||Nil|