* Famous poet Shakespeare wrote " Neither a lender nor a borrower be" . Unlike most of his sayings holding true to this day this seems contrary specially in relation to Housing Loans. Almost every one buying a house has to take a housing loan. Some people in spite of having money also prefer to take loans mainly to avail of the rebate in income tax. Unhappy at paying more than 30% of their earning as income tax, people are more willing to pay EMI ( equated monthly instalments) to avail of some rebate in Income Tax than pay Income Tax.

Property supplements in daily newspapers and magazines have spread the awareness about benefits of availing loans for housing. Some of our young allottees are keen for a loan as soon as they submit their application to us.

Some of the points to be kept in mind regarding housing loan are given below :-.

1. Housing loan can only be applied for after booking/allotment letter is issued.

2. An allottee has to pay 15% - 25% of the cost of Dwelling Unit to the allotting agency to be eligible to apply for a loan.

3. There is no rebate in Income Tax for availing a loan. The rebate is for the repayment of the loan, equal to the amount of interest paid on the housing loan.

4. No rebate is available till possession of DU is taken. Interest paid prior to financial year of possession is available in 5 equal instalments from financial year of possession. This is in addition to interest payable in current financial year.

5. Interest rate and other parameters are rapidly changing due to volatile economic scene and stiff competition among loaning agencies. An allottee should not be in dreadful hurry to process his loan papers. It is advisable to process papers just before the payment due date.

There is good news for AWHO allottees. AWHO is negotiating with some loaning agencies for exclusive offers for AWHO allottees.

* No objection certificate is not needed for allottees seeking loan from AGIF.