Hi,
I am planning to get home loan for a land purchase already been identified. I don’t have any plan to construct house in this land for next 5 years. Just for investment I am purchasing this land. Below are details. Land Purchase Amount : 9 Lac. Home Loan Amount : 7 Lac (80%). Tenure : 5 Years.
1) Whether I should go for fixed or floating Rate. Also It would be helpful if anyone suggests me regarding the bank from which I should go for home loan.
2) As far as I know, SBI & HDFC are the best for Home loan. Only HDFC gives Home Loan for Land Purchase. If SBI means needs to start construction within 6 months from the 1st loan disbursement.
3) Can I claim Tax exemption for this home loan. Whether Interest / Principal consider for tax exemption?
4) When I asked for the loan in HDFC Bangalore branch, they said 10.25% interest rate and 0.5% processing fee + service-tax. But when I asked in HDFC Madurai branch (property in Madurai), they said 10.50% (since it is not housing loan, and it is land purchase there is 0.25% increase) interest rate and 1% processing fee. Is this acceptable? How come two different branches say different interest rates? (As far as I know, only HDFC bank giving loan for Land Purchase. No other banks giving!!)
Please help me.
Regards,
Suresh