I have one home loan. Can I get a second home loan? Will I get tax benefits for both?
You can have two concurrent loans provided you fulfill the loan eligibility criteria of your lending bank or NBFC. Paying 2 home loan EMIS can dent your finances unless you have a good monthly income. As far as taxation is concerned if you choose to buy another property
after taking a second home loan you will not get any tax deductions for home
loan principal amount repayment. You will however get tax deductions on the
interest repayment for your second home loan without any limit.
You can, of course, take a second Home Loan if you are eligible for one. Based on your present income and loans, lenders will decide your eligibility. You can claim tax benefits for both loans. The tax benefits claimed will vary, depending on whether the house for which the loan has been taken is self-occupied or let-out. The principal repayment for both will have a limit of Rs. 1,50,000 under Section 80C of the Income Tax Act. You can claim up to Rs. 2 lakha each under section 24 for the interest repayment of the loans.