Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Service tax applicable on flats
Service tax applicable on flatsApnaloan.com Research Bureau
12 Jun 2008
The State Government has levied a service tax of 4.5 per cent service tax on flats in new buildings bought after June 20, 2006. This is yet another cost, following the levy of VAT.
Even those buyers who entered into an agreement with developers in 2005 and got possession recently are also being asked to pay VAT.
The decision to levy the 4.5 per cent service tax saw the light of the day in 2005, though its implementation started recently as it had been challenged in the Supreme Court by Ahmedabad-based M/s Harekrishna Developers.
In April 2008, the Supreme Court ruled that the construction and sale of residential complexes would be liable for service tax. The sale agreements will be taxable under the category "Construction of Residential Complex" or "Works Contract Service".
Under the category of "Construction of Residential Complex", tax is payable at the rate 12.36 per cent on the entire agreement value or the contract price.
According to a notification issued on March 1, 2006, 67 per cent alleviation is provided towards material used in construction. Even after availing the concession the liability for the service tax would be at close to 4.5 per cent. Know more about home loans on www.apnaloan.com.