{"id":591,"date":"2021-07-10T07:46:52","date_gmt":"2021-07-10T07:46:52","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=591"},"modified":"2022-07-21T10:25:38","modified_gmt":"2022-07-21T10:25:38","slug":"what-are-the-income-tax-benefits-on-mortgage-loan","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/mortgage-loan\/what-are-the-income-tax-benefits-on-mortgage-loan\/","title":{"rendered":"What Are The Income Tax Benefits On Mortgage Loan"},"content":{"rendered":"\n
\"What<\/figure>\n\n\n\n

A\nmortgage loan can be applied by both salaried & self-employed\/self-employed\nprofessionals against the pledge of their self-owned, vacant, or rented\nresidential, commercial, industrial & land property in India. It is also\ncommonly referred to as a loan against property (LAP). A non-resident Indian\n(NRI) can also apply for a mortgage loan<\/strong><\/a> in India. <\/p>\n\n\n\n

The\nmortgage loan amount can be used for a variety of personal and professional\nneeds. Since it is backed by a security, these secured loans offer competitive interest rates for loans against property<\/strong><\/a> starting from 7.50%* p.a. in\ncomparison to the unsecured loans such as personal loans<\/strong><\/a> and business loans<\/strong><\/a>. Being secured in nature mortgage\nloans are long-term commitments with repayment tenures going up to 20 years.\nQualifying for a mortgage loan is easy and simple. The lenders have different\nparameters\/ loan against property criteria to calculate the mortgage loan eligibility<\/strong>, most common\namong them are the LTV<\/strong><\/a>, FOIR<\/strong><\/a> & CIBIL<\/strong><\/a>. (Also read- What do you mean by loan eligibility<\/strong><\/a>)<\/p>\n\n\n\n

Also Read: <\/strong>How to apply for a mortgage loan online<\/strong><\/a>.<\/strong><\/p>\n\n\n\n

Another\nimportant factor that remains unknown to many mortgage loan applicants is that\nin addition to availing of a LAP loan<\/strong><\/a> they can also enjoy the benefits of\nmortgage loan deduction in income tax. Let\u2019s look at some of the key mortgage\nloan income tax exemptions.<\/p>\n\n\n\n

Mortgage Loan Income Tax Benefits<\/strong><\/h2>\n\n\n\n

Mortgage\ntax benefits can only be claimed provided the end-use of the loan is justified\nand is adequately documented. The end-use is the purpose why a mortgage loan is\navailed, which is broadly categorized into personal use & business use.\nMoreover, unlike home loans where the tax rebate<\/strong><\/a> is enjoyed on both the\nprincipal repayment and the interest amount paid, in mortgage loan tax\nexemptions can be claimed only on the interest paid amount and not on the\nprincipal repaid. Hence unlike home loans, the mortgage principal tax deduction\ncannot be enjoyed for the principal repayment under section 80(C) of the Indian\nIncome Tax Act, 1961.<\/p>\n\n\n\n

Mortgage Loan Tax Deduction On\nInterest<\/strong><\/h2>\n\n\n\n