Benefits of Taking a Home Loan
To have our own home, a place to be called ours is undoubtedly one of the biggest dreams to be true for many of us. We live there, decorate it the way we want, and grow old; all our memories are attached to that one place only. However, buying your own house is surely an expensive affair. But with financial assistance, this dream can be turned into a reality. Let’s understand what is a home loan and how a home loan can benefit you in numerous ways by reading about the advantages of home loans.
What is a Home loan?
A home loan or housing loan is a monetary support that financial institutions offer to the needy. With this extended financial assistance, people can purchase or construct their dream homes as it helps in supporting the budget for purchasing a house. But first, home loan eligibility is needed to be checked as eligible applicants can only avail a home loan. You can check your home loan eligibility for free using a home loan eligibility calculator.
What are the benefits of a home loan?
When any person avail a home loan, he or she can enjoy numerous advantages:
Taking a home loan helps you take benefits in claiming tax deductions under the Income Tax Act 1961. An individual can claim up to Rupees 1.5 lacs under Section 80C on the repayment of the principal amount and up to Rupees 2 lacs under Section 24B on the repayment of the interest.
· Low-Interest Rate
In comparison with other types of loans, the interest rate on a home loan is much lower. Therefore, availing a home loan is much better than taking a personal loan with high-interest rates. To know more about the monthly EMIs, you can calculate the EMI using the online home loan EMI calculator.
· Due Diligence
Purchasing a house or a property can be one of the biggest investments of your life and you might use all your life’s savings on that one thing. Therefore, it is extremely important to see whether it is safe or not. When you take a home loan, the financial institution checks the legitimacy and genuineness of the property from various perspectives, and if they found that, the title is clear then only they approve your loan application. Hence, it helps to protect you from being fooled or scammed. The due diligence done by a financial institution helps to give your property a green signal.
