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Home Loan FAQs

1. What are the Type of Loan that Reliance Home Finance Limited Offers?
  • Loan for Purchase of Property from Builder
  • Loan for Purchase of Resale property
  • Loan for Residential plot purchase and self construction thereon
  • Loan for Self Construction
  • Balance Transfer from other banks
2. How do I apply for the loan?
  • By calling on our toll free no. at 1800-300-90909.
  • Drop in an email at customercare@reliancehomefinance.com
  • SMS HOME at 561616
  • Visit our nearest Branch
3. What is the right time to apply for a Home Loan?
  • You can apply for Home Loan with Reliance Home Finance Ltd. even before you finalize your property. The loan amount would be approved, based on your repayment capability.
4. What are the loan tenure options?
  • RHF offers Home loan up to 30 years, provided the term does not extend beyond 65 years of age (for Self Employed) or the retirement age (for Salaried) as applicable.
5. How is the interest charged/ calculated?
  • Interest is calculated on monthly rest.
6. Who all can be the co-applicants for the loan?
  • Your spouse
  • Any of your blood relative (immediate family members)
  • All Co-owners have to be necessarily co-applicant in the loan
7. What are the securities/ collaterals you need to provide?
  • The property to be bought or constructed with the proposed Home Loan will stand as security/collaterals to the loan. Title to the property should be clear, marketable and free from any encumbrances. The security will be created by deposit of original title documents of the said property.
8. What is an EMI?
  • You repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement.
9. What is pre-EMI?
  • Pre EMI is the Interest paid on the Loan Amount availed in trenches before the start of the actual EMI. This generally occurs in Self Construction or Construction Linked Disbursals. The EMI doesn't get started till the loan is disbursed in full and hence interest is charged on partially disbursed loan amount only which is Pre EMI.
10. What is a Monthly Reducing Balance?
  • An Equated Monthly Installment (EMI) has 2 components: interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in significant savings for the customer over the tenure of the loan. RHF works on Monthly Rests basis.
11. What is an amortization schedule?
  • An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the break-up of every EMI towards repayment interest and outstanding principal of your loan.
12. What are the stages involved while taking a loan?
  • Loan Application submission– Duly completed and signed Application form along with necessary documents pertaining to KYC and Income to be submitted for appraisal.
  • Loan Approval – Loan will be approved based on the RHF policy.
  • Loan Disbursement- Based on the nature of transaction basis of nature of transaction loan will be disbursed. Example- For resale disbursal instrument is made favoring the seller; for Balance Transfer it will be favoring existing financer; for self construction cases it will be in favour of the borrower in trenches on the basis of stage of construction; for Builder purchase it will be in favoring of the builder in trenches on the basis of stage of construction.
13. What is a Monthly Reducing Balance?
  • An Equated Monthly Installment (EMI) has 2 components: interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in significant savings for the customer over the tenure of the loan. RHF works on Monthly Rests basis.
14. What kind of Tax Benefit does an individual get while applying for a Home Loan?
  • Income tax exemption on repayment of home loan principal amount up to Rs. 150,000 (Rs. 2,00,000 for senior citizens) annually under Section 80 C of the Income Tax Act:
  • Principal repayment component of up to Rs. one lakh fifty thousand (Rs. two lakhs for senior citizens) can be clubbed under the overall limit for tax saving instruments eligible under Section 80C to claim benefit upto Rs. 50,985 per annum
  • Available only for purchase or construction of residential property
  • Deduction available only for self occupied property
  • Any amount paid towards partial or full prepayment of home loan is also eligible to be included for benefit under this section

  • Deduction of home loan interest paid for self occupied home up to Rs. 2,00,000 (Rs. 3,00,000 for senior citizens) annually under Section 24 of the Income Tax Act:
  • Annual interest component of up to Rs. two lakh (Rs. three lakh for senior citizens) can be claimed as deduction against income and reduce the your tax liability by upto Rs. 67,980 depending upon your tax slab
  • Additional exemption of up to Rs. 50,000 can be claimed as deduction against income from FY 2016-17 and AY 2017-18 on first home provided the sanctioned loan amount is upto Rs. 35 lakhs and cost of house is upto Rs. 50 lakhs
  • Available for purchase/ construction/ repair/ renewal/ reconstruction of a residential house property
  • Benefit available only for self occupied property
  • Deduction is available on an accrual basis and not on a payment basis. Hence, deduction under Section 24 can be claimed on yearly basis even if no payment has been made during the year but interest has accrued

  • Deduction of upto 100% interest paid on home loan taken to purchase a property that is either rented out or not self occupied:
  • In case you own more than one property, one of which self occupied and others are rented out or lying vacant, you can claim income tax benefit on entire interest paid on such property and set it off from rent for rented out property received or deemed rent on vacant property
  • In case the interest on home loan together with other deductible expenses (such as repairs, house tax, standard deduction of 30% on rented property etc) is higher than rental income/ deemed rental income, the loss can be adjusted against other income heads including salary income, business o=income, interest income, thus reducing overall tax liability. In case there is unabsorbed loss even after these adjustments, same can be carried forward for up to 8 years to be adjusted against taxable income in future years
15. Can you get IT certificates in the name of both the applicant and co-applicant separately?
  • As per IT rules, only one certificate can be issued for a Home Loan hence one certificate will be issued in the name of both the applicant and co applicant.
16. When is the IT certificate issued?
  • You can request for a provisional IT certificate that can be issued any time during the course of the year.