To liquify your fixed asset such as the property you may opt for loan against property. Major lenders such as NBFCs offer lucrative offers on this loan thus allowing you to meet your financial obligations with ease. Moreover, this is a secured loan in nature which can be availed on minimum rate of interest on loan against property as the applicant has pledged a collateral/ security towards the loan.
This the amount which you pay monthly to the lender to settle the loan. This is the amount which is taken away from your income say, your salary. Hence,you can claim it while filing your tax returns and save some percentage on your hard earned money by the end of each year. While, deductions on principal amount can also be claimed up to Rs. 2 lakhs per year as per Section 80C of the Income Tax Act.
No matter which property you pledge as collateral for the loan. Be it residential, industrial or commercial. You can claim tax deductions under each. While, you can file for tax deductions depending on the usage of the loan. To know more about them you may discuss loan terms with your Relationship Manager.
Save on Interest
According to Section 24B you can save substantially on your interest towards the loan against property. Though, this is not a huge amount when calculated on a yearly basis it adds up to a substantial number when taken in consideration of the entire loan.