Taxation and Home Loan Eligibility Quiz

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What costs may be included in the home loan eligibility assessment?

Monthly utility bills

Homeowners insurance premiums

Rooftop Solar Photo Voltaic System (correct)

Fixed property taxes

As per Cent home loan scheme, who can apply for the inclusion of the Solar Photo Voltaic System cost in their home loan?

Real estate investors only

Only first-time homebuyers

Individuals with a federal tax exemption

All applicants willing to install such systems (correct)

Which of the following is a requirement for the property to be financed?

It must have a resale value

It must be located in a city

It must be newly constructed

It must be free from all encumbrances (correct)

What is true about reimbursement for improvements made to the property?

Investments in updates will not be reimbursed Signup and view all the answers

When taking over a loan, what is a common requirement regarding the existing mortgage?

It should comply with existing legal guidelines Signup and view all the answers

Which of these expenditures is not specifically enumerated for non-reimbursement?

Structural repairs Signup and view all the answers

In the context of home loans, which statement is accurate?

Take-over can only happen if norms are complied with Signup and view all the answers

What is necessary to confirm the investment and construction compliance?

A certificate from an Architect Signup and view all the answers

What determines the quantum of reimbursement?

The investment made by the borrower Signup and view all the answers

Which document serves as a basis for calculating the present realizable value of a property?

A valuer's certificate Signup and view all the answers

What is the margin to be considered in the reimbursement calculation?

The maximum permissible loan-to-value (LTV) ratio Signup and view all the answers

If the borrower’s investment and the property value both need consideration, which will affect reimbursement the most?

Whichever value is lower Signup and view all the answers

What is the second option for reimbursement calculation besides the realizable value?

The investment made by the borrower Signup and view all the answers

What type of investment documentation is essential as part of compliance verification?

A certificate from an Architect Signup and view all the answers

For reimbursement calculation, if both methods yield different amounts, which one will be selected?

The lesser amount from the two calculations Signup and view all the answers

What document must be obtained from the person applying for a credit facility?

Affidavit-cum-undertaking Signup and view all the answers

What is the consequence of failing to obtain a completion certificate within 3 months?

The bank may recall the entire loan Signup and view all the answers

What must be strictly adhered to during the construction according to the affidavit-cum-undertaking?

Sanctioned plan Signup and view all the answers

Which document must be kept on record to support expenditure?

Certificate from Architect Signup and view all the answers

What is the LTV ratio applicable under Home Loans meant to ensure?

The value of collateral against loan Signup and view all the answers

Who bears the sole responsibility for obtaining the completion certificate?

The executor of construction Signup and view all the answers

What happens if construction is not carried out according to the sanctioned plan?

The applicant can be penalized Signup and view all the answers

What should be done with expenditure receipts?

They should be kept on record Signup and view all the answers

Why is it crucial to follow the LTV ratio in home loans?

To prevent over-leveraging Signup and view all the answers

What action can the bank take regarding the loan if the completion certificate is not obtained on time?

Recall the loan with interest and costs Signup and view all the answers