BY THIS PPT ONE CAN KNOW WHAT EXACTLY THE HOUSING FINANCE IS..

1. Housing Finance
BY: NISHANTH H
RYMEC
BALLARI

2. contents
• Procedure and Interest rates
• Income Tax implication
• Reverse Mortgage loan

3. Procedure for availing Housing Finance
• The process of getting a Housing Finance
starts with a formal application for the loan.
The application form requires certain basic
information about the receiver of housing
loan.

4. Documents required for loan disbursement
1. Income Proof
2. Age proof
3. Identity proof
4. Address proof
5. Employment details
6. Details about the property if finalized
7. Bank statement
8. Original salary certificate from employer

5. Loan disbursement criteria
1. All the security documents prescribed have been executed
by borrower
2. A valid mortgage has been created in favor of the bank as
per the laws
3. Whenever creation of mortgage is likely to be delayed for
any valid reason, suitable security including third party
guarantee, has been taken for the interim period.
4. The loan will be disbursed in stages where a loan for
construction is desired.
5. Bank will disburse loan amount directly to the builder/
seller/ society as the case may be as requested.

6. Interest rates
• Home loan interest rates in particular are
dependent on the home loan amount, loan
tenure and the profile of the borrower. The
borrower’s credit history and score under credit
information bureau like CIBIL also has an impact
on the home loan interest rate.
• Housing loan interest rates can primarily
classified into two categories
1. Fixed rate of interest
2. Floating rate of interest

7. Income Tax implication
• The key benefits on home loans as per 2015-16
budget presented on FEB 28th 2015applicable for
financial year 2015-16 and assessment year 2016-
17 to maximize your savings on home loans
1. Section 80C- Deduction upto rs 1.50 lac for
principal repayment
Under Section 80C, you can claim deduction upto
rs 1.50 lac by way of investment in eligible items

8. 2. Section 24- Deduction for interest payment
Section 24 (b) of the Income Tax Act allows
you deduction for interest payable on loan
taken to buy or construct a house property, or
even repair or reconstruction of an existing
property.
3. Section 80EE-
Additional Deduction upto rs 1 lac for interest.

9. Reverse Mortgage Loan
• A Reverse Mortgage is a loan available to
senior citizens. Reverse mortgage, as its name
suggests, it is exactly opposite of a Mortgage,
such as home loan.
• Reverse is the case in reverse mortgage, the
loan amount increases with time and the
home equity decreases with time

10. • Working of Reverse Mortgage
In Reverse mortgage, client pledge a property
which he already owns. The Bank, in return,
gives him a series of cash flows for a fixed
period.