If a house is still under construction, only a partial disbursement of the loan is made by the lender. This is done periodically and the final disbursement is made on completion of construction.
However, in some cases, the home loan company may be willing to make the entire payment even if the construction is not complete.
This is known as the Advance Disbursement Facility.
An advance disbursement is generally made if the buyer requests the home loan company to do so and if the home loan company is fairly convinced the builder will complete the construction on time.
No tax benefits are available in respect of repayment of a home loan in the year in which the construction of the property is not completed.
September 23rd, 2008 at 7:21 pm
what is the basis for adf.
October 17th, 2008 at 5:14 pm
So during this period the borrower has to pay Pre-EMI rite?
November 18th, 2008 at 7:23 pm
While taking Advance Disbursement Facility will not the buyer of the flat face risk if the builder does not complete the project or delays the project, there would be interest cost to it. So it does not make any sense at any given time to go for Advance Disbursement Facility.
November 19th, 2008 at 8:21 pm
Why should we go for a home loan can’t we take a personal loan as in case of personal loan taken for construction you get a tax benefits
November 19th, 2008 at 8:27 pm
I would like to ask weather loan for construction is provided by the banks nowadays.
November 19th, 2008 at 10:54 pm
But can the tax deductions be claimed for the property which is constructed within 3 yrs. here the only 1/5th of amount would be claimed for a period of 5 yrs from the time construction is completed rite?
December 18th, 2008 at 1:39 am
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