What are the key features of J&K Bank’s home loan program?
The loan is for
= Purchase of land for the construction of a dwelling house,
= Construction of house/apartment/housing
= Outright purchase of an existing house / apartment / dwelling (fully built / under construction)
= Repairs/renovations/additions/modifications/completion of an existing house/apartment/dwelling unit
Even the bank finances the construction/purchase of 2n/a housing unit per family or purchase of land/plot, that the 1st the housing unit was built/purchased from own sources or bank financing.
Those with regular income are eligible to get the loan. The amount of financing is linked to the repayment capacity of the borrower.
The repayment of the loan can be made within 30 years or until the borrower reaches the age of 75 (in case of salaried class and retirees). For all other categories of borrowers, the repayment age limit is 70 years.
Full program details are available at www.jkbank.com.
What precautions should be taken when taking out mortgages?
First, you need to decide how much financing you need. Do this taking into account your monthly income, age, other debts and financial commitments. You should even consider your job stability. Your loan amount should not complicate your repayment, which could lead to a debt trap.
After deciding on your loan amount, you need to decide on the loan repayment period. When your loan term is short, your monthly equivalent payment (EMI) will be very high. A longer term is usually chosen to improve the borrower’s loan eligibility, but remember that the longer the term, the higher the cost of borrowing. If short-term EMI is not affordable and you want to pay off your loan as quickly as possible, consider a middle path for 10-15 years.
After availing the home loan facility, it is important to opt for insurance of your home loan amount (home loan protection plan) as well as the property you have purchased or built through the bank loan. Home Loan Protection Plan (HLPP) is an insurance plan where the insurance company settles any outstanding amount on the home loan with the bank in the event of the death of the borrower. This way, a borrower can ensure that his family will not have to pay the outstanding loan amount after the death of the borrower. However, it is not mandatory to purchase home loan protection plans. With property insurance, you buy coverage against risks to property/home due to earthquake, fire, flood, storm, theft, etc.
An individual is liable to pay taxes if their income exceeds the taxable income. The Government provides tax relief to certain investing companies and individuals on whom a deduction is available under Section 80C of the Income Tax Act 1961. You can get tax relief on the principal amount of the home loan and the interest paid. However, this relief is available to borrowers who continue or make a prompt payment.