How Is A Home Loan Beneficial?

A home is where you can relax and reside safely after a hectic day at work. It gives you peace of mind and ensures you get the freedom to perform your chores without any interruption. You aim to lead a secure and peaceful life with your family without worrying about insecurities and giving them utmost attention.

Banks and financial institutions are offering a home loan to every citizen of the country to fund the cost of the property. You can borrow a loan amount according to your affordability and repayment capacity and repay it with interest in equated monthly instalments. You can apply for a loan for constructing and renovating the house as well.

Tax benefits

To encourage more people to buy a house, the Indian Government provides a tax deduction on the principal and the interest payable on the housing loan. You are eligible to claim a tax deduction of up to Rs. 1.5 lakh on the loan amount and Rs. 2 lakh on the interest in a financial year under Section 80 C and Section 24 B of the Income Tax Act, 1961. The deductions are only available after the completion of construction.

Convenience

You can receive quick approval when you apply for home loan, even before selecting the property. It helps you arrange funds and pay the seller immediately without wasting time. You can also get attractive interest rates with affordable repayment options from the bank or lender.

EMI repayments

You can repay the loan from your bank account in affordable monthly instalments. Set the auto-debit feature by giving standing instructions to the bank and saving time. You can also avoid the hassle of signing and procuring cheques for the payment.

High repayment tenure

You get a high repayment tenure which can go up to 30 years even when you apply for home loan online. These days, you can visit the bank website or download the official banking app to access all their banking and finance products without seeing them personally. You can reduce the burden of instalments by extending the loan tenure.

Attractive interest rates

When you avail of a home loan in India, you get it at a low and attractive interest rate compared to other unsecured loans. Generally, the interest rate ranges between 7.35% to 8.50%, making it an affordable loan scheme.

Security

Buying a home is one of the biggest financial commitments. You need to pay the EMIs on time and ensure you have the repayment capacity to finance the loan. It gives you mental satisfaction and a sense of accomplishment. You can secure your future by applying for a home loan online and reducing the paperwork.