I want to know some details about home loan.
I am planning to buy plot (empty land) but I dont want to construct home. What if I buy home loan and repaid all the plot loan and close it without construction?
Is that possible ? Why I prefer home loan means i want tds exemption benefit… is it workout or possible pls guide me … also pls suggest other ways also…
Thanks in advance
home loan is a subsidised loan offered by all banks but you will have to go for construction soon after buying the plot if you don’t start construction the bank charges at a higher rate and some banks charge at personal loan rates, you decide whether you can start construction at time specified if not apply for loan for purchase of plot which will be ofcourse at a higher rate.
IT offers rebate on out- right purchase, construction and not on purchase of plot venture into home loan only when you are ready to pay the EMI.
If you don’t construct within 2/3 years, avoiding to bank norms your home loan will be converted to personal loan.
What you will be taking is composite loan