As we all know, Indian Income Tax department has certain provisions that allow residents to claim tax benefits on loan against property as per different sections namely under section 80C, 80D, 80E, and 80EE along with section 24B. Most of these tax benefits can be claimed on the interest component paid towards a loan taken for the following reasons:-

> A loan taken for the purpose of financing higher education of self or their kids. Interest paid against this loan can be claimed (up to what’s applicable) as a tax deduction under section 80E. If you’re considering taking an education loan, only the person whose education is being financed can avail this deduction or the student’s parent can (if they are the ones paying EMI).

>Given the fact home buying is ongoing process because it’s not only about owning one, people also have to maintain it through regular home renovation to preserve its market value. That said, the cost of getting your home renovated even once is quite high and hence, it’s understood the person would need additional financial support. Accordingly, people taking a loan to manage the said cost can claim a deduction worth Rs 1.5 lakh every year against the interest paid under section 80C.

> Lastly, people can also claim a deduction (varying as per the nature of expense) if a loan is taken for managing medical expenses.

Additional Read: Tax Benefits Associated while Taking a Loan Against Property

Talking about which loan one should take in order to avail all above shared tax benefits, a loan against property is a conducive option.

Check here: Here’s How Freelancers Can Avail Easy Business Finance

Launching any kind of business whether big or small-scale requires adequate funding. As without enough working capital the business cannot reach its full potential. Keeping this in mind, leading lenders such as NBFCs offer finance on fixed asset such as your property.

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You can apply for the loan online with minimum paperwork. But, it must be kept in mind that the property must be free from any litigation and does not have any existing loan on it. This helps to acquire up to 60-70% amount of the property as loan from lenders.

This is an all purpose loan and can be used to cater to several financial obligations which includes managing your startup. You may use the funds to hire new staff, buy raw materials, upgrade to latest technology, scale up business operations, consolidate business debt and much more.

Additional Read: How to apply for a Loan Against Property for Business Startup?

But before you apply for the loan make sure to compare various loan offers online. This will allow you to choose the option which best suits your business needs. You may use the EMI calculator available at the lender’s official website. It will help you evaluate your loan better and easily pay it off in flexible repayment tenure ranging between 2 to 20 years.

Whereas, as an existing customer one can take advantage of the Balance Transfer Facility. This is a hassle free process which lets you transfer the existing loan to a lender offering lower rate of interest. Thus, reducing the monthly payout balance and letting you manage the loan better.

Also Read: Is It Wise For New Business Start-Up To Take A Loan Against Property?

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