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Can I repay my home loan in cash?
Update on Sec 269ST – Clarification on the repayment of Loan Instalments in Cash. You can repay your loan amount to any HFC (Housing finance company) or NBFC (Non-banking finance company) in cash provided each loan instalment is less than Rs 2 lakh. The government introduced a new section 269ST.
Can we pay bank loan with cash?
The finance ministry issued a circular clarifying that the prohibition of cash payment would only apply to repayment of a single loan instalment in cash. As per the new income tax rule introduced in the last budget, cash payments/receipts of or over Rs 2 lakh are illegal and will attract penalty.
Is it good to buy home on loan or cash?
Borrowing any loan comes with a level of financial risk. Apart from that, it also offers you other benefits like a 3 EMI holiday, a top-up loan, and competitive rates of interest. Cash payments, on the other hand, carry no risk. However, purchasing a home requires a lot of cash that may be tough to organise.
Is it better to buy a house with cash or loan India?
Experts believe that even if you have the sums to purchase the property in one go, it is better to take a home loan. Instead of spending a lump sum amount on the property, it is better to go for a large amount down-payment and pay off the remaining amount in higher amount, monthly EMIs, since you can afford it.
Should you pre-pay your loan?
While loan pre-payment is known to be highly beneficial, there are a few things every borrower should know. Prepayment lock-in period: Most banks have a lock-in period ranging from 1 to 3 years, during which you are not allowed to pre-pay the loan.
Why do banks refuse to accept prepayment of home loan?
One of the most common way to discourage is that bank refuse to accept prepayment if the borrower is unable to visit the branch physically. In IT age, it is surprising that facility of online prepayment is not enabled by almost all Home Loan providers for prepayment of Home Loan.
What is a mortgage prepayment penalty and how does it work?
What Is A Prepayment Penalty? A mortgage prepayment penalty is a fee that some lenders charge when you pay all or part of your mortgage loan term off early. The penalty fee is an incentive for borrowers to pay back their principal slowly over a full term, allowing mortgage lenders to collect interest.
What should I carry with me for home loan prepayment?
You should also carry your cheque book because besides cheque towards Home Loan prepayment, you also need to pay Simple Interest for the month towards principal being prepaid e.g. if you are making a prepayment of 5 lakh on 20th of the month then this principal amount will be adjusted in your Home Loan account w.e.f 1st of same month.