shubhamloan

Advantages of Taking a Home Loan

Feb 20th 2019 at 12:57 AM

 

Buying a home might not be easy. Before taking the step, it is difficult for many people as it requires a big decision.  With the booming property rates, it is difficult to buy a home through the savings. It also takes time to prepare yourself and your finances to ensure that your first home will be a worthwhile investment.

Home loan helps an individual to buy a house. The land is mortgaged with the bank or non-banking financial sector till the repayment of the loan. The lender can hold the deed of the house until the housing loan amount is repaid fully along with the due interest in time. The home loan can not only be taken for the acquisition of the property but also the construction or renovation of the house.

Usually, a home loan is one of the biggest liabilities. Considering the huge amount and the long tenure involved, however, our home loan also offers you some benefits.

Benefits of a home loan:

Tax benefits: – To encourage more individuals to buy their own house, the government of India provides tax deduction on the principal as well as interest paid on home equity credit. An individual is eligible to claim a deduction of up to Rs 1.5 lakh under Section 80C of Income Tax of India 1971 Act in a financial year.  While a deduction of up to Rs 2 lakh is allowed on the interest portion under Section 24B of Income Tax of India Act.   The deductions under income tax are only available once the development of the house is complete.

Tax benefits on the second house: - In the case of the second house, you are eligible to claim the deduction for the entire amount of housing loan interest paid under Section 24B of Income Tax Act.

No prepayment charges: – Unlike other loans where lenders charge payment penalties towards home loan. In this case, you can utilize it for making half payment towards your home loan and lower your burden.

Balance Transfer Facility: – In case of home loan you can avail the facility to transfer your home loan to the different investor if the person is providing you with a loan at a lower interest rate. Our Balance Transfer Calculator helps you to know how useful it will be for you to transfer your loan quantity.

Makes it stress-free to buy dream home: - For many individuals buying a house with own money is not possible. Home equity credit can be reimbursed in easy monthly installments makes it easier to buy a house.

High repayment Tenure: - Among all kinds of loan, the home loan has the longest repayment/ reimbursement tenure which goes up to 30 years. Therefore, one can reduce the burden of equated monthly installments by extending the tenure. Use our home loan EMI calculator to know how EMI change as you change your home loan tenure

Enjoy capital appreciation: – You will conjointly get benefit from the increase in costs of the property over time.

Saves you from paying rent: – As rent in metro cities is quite high they put the strain on your monthly budget. It is better to pay the EMIs and own a house.

 

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