Lower Tenure: ? A land loans has reasonably a shorter tenure of up to? ?15? ?years, ? ?which isn’t the situation in mortgage loans, ? ?which is followed by an extended tenure of? ?30? ?years. ? ?Therefore, ? ?the EMI within the full instance of financing for plot purchase is greater than compared to regular mortgages. ? ?The tenure for the land loan additionally is dependent on the chronilogical age of the debtor, ? ?repayment capacity, ? ?etc.
Tax Benefits: mortgage loans be eligible for a taxation deduction on re re payment associated with major quantity under Section? ?80C of the tax Act as well while the interest component under area? ?24?(?b?) ?of the Income Tax Act. ? ?On one other hand, ? ?tax benefits on a land loans are not ? that’s available ?However, ? ?borrowers could claim a taxation deduction on in the event that homely home is constructed for a plot purchased because of the debtor. ? ?A debtor can claim a taxation deduction resistant to the loan quantity taken for construction, ? ?after the conclusion of construction regarding the plot.
Prepayment Penalty: drifting price loans sanctioned to specific borrowers are clear of the prepayment penalty if your debtor really wants to foreclose the mortgage. ? ?However, ? ?a land loan like a mortgage could attract prepayment fees of? ?2? ?to? ?4%? ?of the amount that is prepaid the non-individual debtor has had it. ? ?A debtor should see the loan contract very very carefully and make clear the foreclosure charges of this loan before signing the contract. ? Continue reading