Loan Against Property

 

Our Loans Against Property can help you through life’s biggest moments. Weddings, personal passions, educational fees or career changes - we’ve got you covered. Refinance any existing commercial or residential property at the best rates today.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Udyog Loan Against Property

 

Are you an MSME owner looking to scale your business operations? Take your business to new heights with Godrej Capital Udyog Loan Against Property. Our loan solutions enable business owners to get higher loan eligibility by allowing multiple sources of income to be considered. With quick loan approvals and attractive interest rates, our goal is to help your business achieve growth.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Lease Rental Discounting

 

Want to leverage your rental earnings to get a loan? We offer industry-best loan-to-value Lease Rental Discounting, allowing you to explore new business opportunities, fund personal expenses, or even pursue higher education. Unlock the value of your assets without selling them.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Commercial Property Loan

 

Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Balance Transfer

 

Transfer your existing loans to Godrej Capital and experience the benefits of lower interest rates, flexible repayment terms, and significant EMI savings. Enjoy higher eligibility, along with a Top-Up loan, to take care of your extra needs.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Home Loan

 

Seeking a Home Loan to buy a ready-to-move-in property, an under-construction house, or renovate your current residence? Our Home Loan, featuring low interest rates and flexible EMI plans, is specifically designed to help you accomplish buying your dream home.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Plot Loan

 

Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for Doctors

 

Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Professional Loan for CAs

 

Want to scale your professional practice? We now offer professional loans for doctors and chartered accountants (CAs) to help you expand your existing set-up, hire more staff, buy modern equipment, and fulfil other business requirements to improve and develop your services.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan for MSMEs

 

If you're an entrepreneur with a small business or an MSME and are aspiring to take your venture to greater heights, you're in the right space! While you hustle for your company's success, we stand prepared to accompany you on this journey. Access unparalleled funding possibilities with our MSME-focused business loans, aligning seamlessly with your endeavors for business growth.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan for Women

 

Are you a woman entrepreneur with a vision for business growth? We are excited to fuel your ambitions with our women-centric business loans. Whether you're spearheading a small-scale business or a micro enterprise, our MSME-focused business loans are designed to meet your business needs.

 

Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan

 

We give you the courage to take that next step that your business needs. Godrej Capital Business Loans empower you with customizable financing solutions to grow your business to the next level!

 

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A Guide to Avail Tax Benefits on Home Loans



Home Loans help you fulfil one of your most cherished dreams - buying your dream home. As a buyer, you have more choices than before to choose your home and select your lender for funding it. However, there’s another aspect of Home Loans that makes them an attractive proposition. It’s the tax benefits on offer.

 

Let’s understand the various tax benefits on Home Loans that you can avail that help you lower your tax outgo.

 

Tax Benefit on Principal Amount of Home Loan

 

The EMI you pay towards your Home Loan has two components - principal and interest. Home Loan income tax rebate is allowed on both these components. Under section 80C of the Income Tax Act, 1961, you can enjoy a maximum tax rebate of INR 1.5 lakhs on Home Loan principal.

 

It’s essential to note that investment in other financial instruments such as public provident fund (PPF), tax-savings fixed deposits, national savings certificate, etc., also qualify for tax exemption under section 80C. The combined limit of all the deductions is INR 1.5 lakhs.

 

You can claim tax benefit on the principal amount of Home Loan on a payment basis, irrespective of the year for which you have made the payment.

 

Conditions to Claim Tax Benefit on Home Loan Principal
However, tax benefit on Home Loan principal is allowed only after completion of construction. You can’t claim deductions for the principal amount paid during the years under which the property was under construction.

 

Also, if you sell your home within 5 years, from the end of the financial year from which you’ve obtained possession, you can’t claim any tax deduction. In such a case, the total amount claimed as a deduction in the previous years will be deemed as your income, and you will have to pay tax on it.

 

Tax Benefit on Home Loan Interest

 

Now, let’s understand the tax benefit on Home Loan interest you can receive under section 24 of the Income Tax Act, 1961. The maximum deduction on Home Loan interest you are entitled to is INR 2 lakhs. An essential thing to note is that tax benefit on Home Loan interest is available on a payable basis. It means even if you’ve not made any payment during the year, you can claim tax benefit.

 

Things to Note
Note that if the property is not completed within 5 years from the end of the fiscal in which you have taken the loan, the quantum of interest benefit comes down drastically to INR 30,000 from INR 2 lakhs.

 

The table below summarises the tax benefits on Home Loans under section 80C and 24:

 

Particulars Section 80C Section 24
Deduction Allowed On Principal Interest
Property Type Only residential Any real estate
Deduction Basis Paid Payable
Amount of Tax Deduction INR 1.5 lakhs INR 2 lakhs
Loan Purpose Purchase/construction of a new home Repair/purchase/construction/ renewal of a housing property

 

Tax Benefit on Home Loan for First-time Buyers

 

If you are a first-time home buyer, there are more benefits on offer under section 80EEA. You can claim an additional tax benefit of INR 50,000 on the interest paid towards your Home Loan, up and above INR 2 lakhs. However, to claim this benefit, the below conditions must be fulfilled:

 

  • The property’s stamp value should be less than INR 45 lakhs

     

  • The loan sanction date must be between 1st April 2019 and 31st March 2022

     

It’s essential to note that the deductions mentioned above are applicable only if you have opted for the old tax regime. If you have switched to the new tax regime announced in the Union Budget 2020, you will have to forgo these exemptions.

 

At the same time to claim the deductions, you need to furnish a statement provided by your lender that indicates the amount paid towards principal and interest. After claiming the deductions mentioned above, you need to pay tax on your balance income based on the income tax slab rates.

 

You can use Home Loan income tax benefit calculators available online to know the deduction you can claim towards your loan.

 

Things to Note While Opting for Home Loans

 

Now that you know the tax benefits on Home Loans, you need to be mindful of certain things before availing this all-important loan. Note that Home Loans are long-term commitments, and hence you must judiciously choose your lender. Before signing the loan papers, factor in the:

 

  • Lender’s reputation

     

  • Rate of interest on offer

     

  • Repayment flexibility

     

  • Sanction and disbursal process

     

  • Eligibility criteria

     

  • Facilities such as parallel funding

     

Also read the fine print carefully to know the various costs to make a well-informed decision.

 

Godrej Capital is the financial services arm of Godrej Group which offers home loans, Loan Against Property and other secured loans. With innovative products and offerings, customers can get hassle-free loans on easy terms and conditions. Click here to know more about the offering.

 

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to the product or service document and/or connect with our customer representative prior to making any financial decision.