Housing Loans

These are available from a host of sources. Banks and housing finance companies are the main source. Interest rates vary from lender to lender and on the amount of the loan. So shop around before you take a loan. Be careful about the hidden charges like processing charges, loan cancellation charges and prepayment charges. Many developers offer you payment plans spread over a few years. Compare the cost of paying the developer upfront and taking a loan to do that and the cost of paying the developer over a period of years, before you go in for a loan. Housing loans carry one of the most attractive tax benefits. You get to reduce your income tax by the Interest payments you Pay on a housing loan up to a certain limit.