Buying a house is one of the most aspirational goals in India. Be it for your own use or for investment, a home or housing loan can provide you with instant financial resources required for buying a house. The structured equated monthly instalments ease up the repayment procedure. A home loan can also be used to buy a plot of the land, bungalow, or flat. According to a recently conducted survey, 67% of Indians are willing to take a home loan for buying a house. This highlights the popularity and usefulness of a home loan.
A complete guide on home loan benefits
Housing loans have a lot of wonderful features to assist you to carry on your dream home project smoothly and effortlessly. Do not forget to check your home loan eligibility before applying for a home loan. You can easily check your eligibility using a home loan eligibility calculator. Doing so will ensure that your application does not get rejected at a later stage.
With a motive to drive people to have their own homes, the government of India has made laws for tax relaxation on home loan borrowers on principal as well as interest amounts. A home loan borrower is eligible to claim a tax exemption of Rs.1.5 lakhs on the principal amount under Section 80C of Income Tax of India 1971 Actand Rs.2 lakhs deduction on the interest amount under section 24B of Income Tax of India Act.
Easy high-value financing
Thus, one doesn’t need to spend several years in building a corpus to buy a house.
Flexible repayment alternatives
Housing loans offer a wide array of repayment options, giving full freedom to the customers to go for the option that best suits their financial capability. The wisely structured equated monthly instalments allay the repayment of loan without putting much financial pressure on borrowers.
Low to no prepayment charges
There are lenders offering home loans at nominal prepayment charges. This keeps your option open for early payoffs in case you acquire some surplus cash in the middle of the loan tenure. This can help you lower either the net tenure of the loan or the value of monthly instalments, curtailing the net interest payments.
Option to refinance
With home loans, you have the liberty to refinance your loan in case you come across a lender offering the loan at reduced interest rates in the middle of the loan tenure. This will help you have some extra savings by curbing the interest payments.
All these wonderful attributes offered by housing loans can facilitate an individual to have his or her own dream home. Therefore, bring an end to your days as a tenant and be the owner of your new home.