HOUSING FINANCE & TAX PLANNING & MORTGAGE ADVICE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the maximum loan-to-value (LTV) ratio permitted by RBI for home loans above Rs. 75 lakh?
RBI mandates a maximum LTV of 75% for home loans above Rs. 75 lakh, meaning the borrower must contribute at least 25% as down payment.
What is the maximum LTV ratio for home loans between Rs. 30 lakh and Rs. 75 lakh as per RBI guidelines?
LTV ratio can be up to 80 percent for this range.
Under Section 24(b) of the Income Tax Act, what is the maximum deduction allowed on interest paid on a home loan for a self-occupied property?
A deduction of up to Rs. 2 lakh per annum is allowed on interest paid on a housing loan for a self-occupied property under Section 24(b).
What is a 'moratorium period' in the context of a housing loan?
Period during which no EMI repayment is required by the borrower.
What is an Equated Monthly Instalment (EMI) in the context of housing finance?
An EMI is a fixed monthly payment made by a borrower to repay a housing loan, comprising both principal and interest components calculated over the loan tenure.
What is the maximum tenure generally offered for housing loans by banks in India?
Maximum tenure is generally up to 30 years.
Under Section 80C of the Income Tax Act, what is the maximum deduction available for repayment of housing loan principal?
A deduction of up to Rs. 1.5 lakh per annum is available for repayment of the principal component of a housing loan under Section 80C.
What is a 'Step-Up EMI' housing loan scheme?
EMI starts low and increases gradually with borrower's income growth.
Video classes for this chapter
HOUSING FINANCE & TAX PLANNING & MORTGAGE ADVICE PART II
HOUSING FINANCE & TAX PLANNING & MORTGAGE ADVICE
HOUSING FINANCE & TAX PLANNING & MORTGAGE ADVICE PART II
HOUSING FINANCE & TAX PLANNING & MORTGAGE ADVICE
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