How does the standard deduction benefit the tax payers?

Union Budget 2018-19, introduced standard deduction of 40,000. Which is a pure deduction from tax, as the tax payer need not show any bills or documents to claim.

So, is the standard deduction really beneficial and how?

For example, a tax payer is getting a salary of Rs. 10,00,000. According to the taxation rules. There is a tax slab till Rs.5,00,000 wherein he need not pay the tax for the Rs.5,00,000. So, the next Rs.5,00,000 is considered as taxable income. The tax payer can claim for tax deduction if he has some investments or expenses. Say, before Budget 2018-19, the tax payer can claim for medical reimbursement of Rs. 15,000 by submitting proper medical bills. Also, there was transportation allowance 19,200.

However, the tax payer can claim those benefits only by showcasing the proper bills. With the budget 2018-19, the medical reimbursement and transportation allowance is removed. But a standard deduction of Rs. 40,000 is added. Which means, the tax payer, without proving or without any reason or without submitting any bills can just need not pay tax for that Rs.40,000. 

Aditya Modani, Tax Director, EY India, said, “Re-introduction of standard deduction meets the long-time wish of salaried class taxpayer. Standard deduction will be provided without any requirement to furnish any evidence for claiming such a deduction.”

It is a bundled exemption, in which the individual tax payer might benefit upto INR 5,800.

Budget and standard deduction
Budget and standard deduction

Plan Now and Save More

You can also get tax exemption if you have investments. Your investments can be in mutual funds, insurance, home loan.  You can claim tax benefits upto INR 3,00,000.

It is perfectly fine to invest. Invest now and claim tax benefit and save more. It is also best time to invest in home as the interest rates are lower. So add both the advantages and flow with the market. Loanyantra helps you to plan well and save more on your loans.

Get to know all the tax exemptions associated with home loans. Claim tax exemption on principal and interest. Loanyantra plans it all for you. Loanyantra is just a missed call away –  040-71011991. Get a call back to let us know more about your requirements. Get a customized service from dedicated relationship manager. Know about all the lenders and choose from the favourite banks with reduced interest rates. Also avail discount on interest rates for an year. Loanyantra will still follow your loan till you close the disbursal loan. Yes, loan. Know more to save more.



Home Loan Prepayment

I am a 26-year-old man, working in an MNC in Chennai. Last year I decided to buy a home for myself. Buying a home was my biggest dream and thanks to the lofty home loan policies that banks and HFCs are offering these days. I managed to buy a 2 BHK. Well, I succeeded in managing to bag loan from one of the government banks and got it at a reasonable interest rate.

Now, I am a satisfied person and secured that few years down the line, I will own my house. But one thing that always boggled my mind was if I wish to prepay my loan then what is the nitty-gritty associated with it. Since I work in private sector, I don’t have much time to run around the bank to fulfill the formalities and the paperwork.

Then, one of my friends suggested to go through LoanYantra, an online loan management company. Well, my association with LoanYantra proved to be a successful one and they gave great tips which definitely cleared the air that surrounded the idea of home loan prepayment. For many to avoid the hassle of running behind the banks, here I am sharing my knowledge of Home Loan Prepayment.

What is Home Loan Prepayment?

Home Loan Prepayment is paying an additional amount to the outstanding principal of the loan amount while you are in the Home Loan tenure. This additional amount is over and above the regular EMIs. This helps in reducing the principal outstanding which in return helps in reducing your EMIs and/or your home loan tenure.

It might sound easy but there is a slight catch. Banks typically levy a prepayment charge of about 2 – 3% of the outstanding loan amount. This amount is charged if you are repaying above a certain amount or you are switching your bank. Although most of the banks don’t charge extra. Thus, it’s advisable that you enquire while you apply for your home loan about the prepayment charges as well.

What You Should Know About Home Loan Prepayment 

Home Loan Prepayment can be a bit tricky as some lenders include extra fees.  In case of home loan, banks borrow funds based on the commitment for long period, these funds have to be re-assigned through credit channels for which bank has to pay additional cost. Thus, banks discourage the process of prepayment by leving an extra charge on the outstanding loan amount.

To Prepay the Home Loan, it is advisable for the concerned person to attend. If not possible,the authorized person needs to carry a letter which says that the respective person is authorized by the lender to repay the loan.

Note : RBI and the NHB have abolished penalty on home loan prepayment (home loans with flexible interest rate). So banks usually do not levy extra fess. But conditions apply.

Home Loan Prepayment Vs Tenure and EMI.

Home Loan Prepayment reduces the outstanding principal amount. So, this inturn reduces your EMI or tenure. It is always wise to calculate and choose.

Loanyantra’s Tip : It is better to reduce the tenure and keep the EMI constant. When you have an increment in the salary, you can increase the EMI which will reduce the tenure even further.

Do’s ad Don’t’s of Home Loan Prepayment:

  • Carry your ID proof (Aadhar is the most preferred one).
  • Carry your chequebook in case you need extra.
  • Also remember to mention your name, account number, home loan account number behind the cheque when you issue.
  • Collect all your previous cheques if you wish to change your EMI.
  • A proof of source of funds for your Home Loan Prepayment.
  • Make sure that you update your CIBIL database after home loan prepayment as it helps in reducing the outstanding balance and also helps in improving your credit score.
Home Loan Prepayment charges of some of the popular banks and HFCs
Banks and HFCs associated with Loan Yantra Home Loan Prepayment Charges
IDBI Not more than one prepayment in a month
DHFL 3% + Service Tax
Indiabulls ZERO
Axis Floating Rate Loan: Nil

Fixed Rate Loan: 2% of outstanding principal/amount prepaid


Words of Wisdom –

LoanYantra is committed to making a difference in the approach towards availing home loan and paying it back. We are known fro absolute customer satisfaction and we work on it continuously. Stay connected with us on and get a planned calender, timely alerts and valuable suggestions on Prepayment of your Home Loan.

ISRO Achievement and Learning From Them

ISRO (Indian Space Research Organization), one of the most esteemed organisations of our country has made India shine on the global platform.

In the last one year, ISRO has given us many reasons to feel proud and the latest addition to it, is the PSLV – C37 launch in Feb 2017.

02_loanyantra_isro-1Here’s throwback at some of the proudest moments of ISRO:

  • Mangalyan – I guess most of you would remember this. Mangalyan, Mars Orbitrar Mission, made ISRO achieve heights of popularity when it successfully entered the Red Planet’s orbit on September 24, 2014, after a 666-million-km journey from Earth. It is the first venture into the  interplanetary space.
  • The launch of PSLV or the 4th navigational satellite: On March 28, 2015, ISRO yet again achieved launch of navigation satellite or PSLV (Polar Satellite Launch Vehicle). This helps India have its own GPS.
  • The launch of 104 satellites in one go (PSLV – C37)– This latest achievement of ISRO has made it gain global recognition. In Feb 2017, ISRO successfully launched 104 satellites in one go. This is the biggest achievement and one of its own kind.

The series of achievement which this organization has achieved is remarkable and stands unparalleled. The efforts of scientist and minds of engineers who successfully managed this project and were able to execute it, is something which can teach us how to plan and work on it.

The achievements of ISRO are not only commendable but also learning for every individual and company. The recent development by ISRO is a clear reflection of hard work; persistence and patience which has made it achieve what it wanted.

What to learn from this?

If you are wondering that these achievements are merely restricted to ISRO then you are absolutely mistaking, these achievements are an example to show how every individual and company can attain its goals. Any kind of business or individual who is striving for success needs three basic qualities:

  • Patience
  • Perseverance
  • And Hard work

These qualities are not only important to achieve a company’s goals but also equally important to attain personal goals. Whether you are working in a company or running your own firm, if you have mastered these qualities you will definitely be able to achieve what you want and succeed at personal and professional front.

What Loanyantra Learnt From ISRO

Loanyantra is an organisation that was started an year back and is a revolution in the service industry. We have always wanted to simplify the house buying process and streamline the home loan process. In our tenure of work we have tasted the elixir of success and at the same time faced certain hiccups but that has never deterred us from working persistently towards our goal. Wisro-postere have always wanted to and will continue to work arduously towards improving our service and setting a new benchmark of success. Our arsenal of committed individuals has made sure that we are always able to deliver our best and have helped in improving the home buying process.

We are proud to witness the  ISRO’s performance and taking a cue from its success we are continuously trying to imbibe the same spirit, dedication and achievement. You are our inspiration for Make In INDIA concept.


Home Loan Life Cycle. Know How Loanyantra Works For Your Home Loan

We believe in Organic Management, the complete and the structured. Every step is taken with attention to close your loan at the earliest.

Feel the difference as we take you to the tour, “How We Work”.

To make our and your work convenient, we place the customers in three phases.
1. Introductory Phase
2. Saving Phase / Servicing Phase
3. Achievement Phase.

Orgnaic Home Loans 1

Introductory Phase :

Enter your details and apply for a new home loan or a balance transfer. Get eligible for the bidding by the leading banks in the industry.

Know the status updates about the sanction of your loan. Utilize our Live Support and Chat with the Banker and our representative.

Quick disbursal of your loan with a minimum of 0.10% discount on the ROI, for an year.

Saving Phase :

Congrats, you are our priority customer now. All your details are in our database / into our algorithm.
Our work begins where everybody else’s end!!!

We track your ROI constantly and send you alerts about part payments and interest rates of your bank and other banks as well.

Get alerts under the following subject lines.

a)Get stuck to the lowest interest rates and save the maximum.
b)Don’t let your money sit unattended. Learn with us how to reduce the tenure of your loan with your hard-earned savings.
c)Be the first one to know about the change in repo rates and the banks spread.

Want to follow our alerts? Just click on the suggestion link. We take you along the process.

Get into this step and refer more of your friends to save more.

Achievement Phase :

You finally, reach this stage before your estimated tenure.
Following the procedure to close the home loan is also equally important.

Apply for the loan closure. Doorstep service assured.

Get updated with the process. We get all your documents back in your hand.

Relax in your home!! You are done with your home loan.

Orgnaic Home Loans

Our team works like a clock, to maintain your ROI at the lowest, every time. Loan Rate Shield guards as a screen and sends alerts and tips how you can close your loan before the estimated tenure.

Stay connected, all time, with us while we work on your loan life cycle.