HOUSING FINANCE AND TAX PLANNING
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
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Free sample — 8 of 66 rapid-fire Q&A cards.
What is the maximum loan-to-value (LTV) ratio permitted by RBI for housing loans up to Rs. 30 lakh?
RBI permits a maximum LTV of 90% for housing loans up to Rs. 30 lakh, meaning the borrower must contribute at least 10% as a down payment.
What is the maximum LTV ratio allowed by RBI for housing loans above Rs. 75 lakh?
75% LTV ratio is permitted for loans above Rs. 75 lakh.
Which section of the Income Tax Act allows deduction on interest paid on a housing loan for a self-occupied property?
Section 24(b) of the Income Tax Act allows a deduction of up to Rs. 2 lakh per annum on interest paid on a housing loan for a self-occupied property.
What is the maximum deduction allowed under Section 24(b) for interest on a self-occupied property housing loan?
Maximum deduction is Rs. 2 lakh per annum under Section 24(b).
What is the maximum deduction allowed under Section 80C for repayment of principal on a housing loan?
Under Section 80C, the maximum deduction allowed for principal repayment of a housing loan is Rs. 1.5 lakh per annum, subject to the overall 80C ceiling.
Under PMAY, what is the maximum carpet area eligible for Middle Income Group (MIG-I) credit-linked subsidy?
MIG-I subsidy applies to carpet area up to 160 square metres.
What does the term 'equated monthly instalment' (EMI) represent in housing finance?
EMI is the fixed monthly payment made by a borrower to the lender comprising both the principal repayment and the interest component, calculated to fully amortise the loan over its tenure.
What is the full form of CERSAI in the context of housing loans?
CERSAI stands for Central Registry of Securitisation Asset Reconstruction and Security Interest.
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