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Tax Exemptions on Taking a Home Construction Loan

You don’t buy a house every other day. Truth be told, it is one of the most critical purchase decisions of your life. And as such, you should not settle for a mass-produced, pre-constructed property. Instead, you should have your house built exactly the way you want.

Ready-to-move-in properties generally overstate the cost of materials used and include many hidden expenses that drive the price up significantly. But when you are making decisions about the construction process, you can buy the materials you want, and keep the cost in check. What’s more, these days you can easily avail housing construction loan at attractive home loan rates.

Additional Read: Home Loan vs. Home Construction Loan

Another benefit of taking a construction loan for building your home is the following home loan tax exemptions you will become eligible for.

Section 24

Under Section 24 of the Income Tax Act, you can claim deductions on the interest component of your home construction loan. In the case of self-occupied property, the maximum deduction allowed is Rs. 2 lakhs.

But, you can claim this deduction only if you complete the construction of your property within five years of taking the loan. Otherwise, you can claim a deduction of Rs. 30,000. If the property in question is not self-occupied, then regardless of the completion status, the amount which you can claim as an exemption is not subject to any limits.

Before taking a loan to avail this exemption, it is ideal to calculate your home loan eligibility online.

Section 80C

Under this Section, you can claim deductions on the principal component of your home loan for construction. Once the construction of your property is over, you can claim a maximum deduction of Rs. 1.5 lakhs.

However, if you sell the property within five years from the date of possession, these benefits will be reversed i.e. the amount you claimed as a deduction, will be added back to your taxable income for the year in which the sale is made.

To qualify for this tax exemption, avail of housing finance after figuring out your eligibility with the help of an online home loan eligibility calculator.

Section 80EE

If you are a first-time homebuyer, you can claim an additional deduction of Rs. 50,000 on the interest component of the house construction loan. You can claim this deduction every financial year until you have repaid the loan completely.

However, to avail of this benefit, the loan amount should be under Rs. 35 lakhs and the value of the property should be under Rs. 50 lakhs. Also, the date of sanctioning of the loan must fall between 01.04.2016 and 31.03.2017. You can claim this deduction over and above the exemption of Rs. 2 lakhs under Section 24.

Section 80EEA

Section 80EEA states that if a first-time homebuyer is not eligible for deduction under Section 80EE, he/she can claim an additional deduction of Rs. 1.5 lakhs on the interest component of loan taken for affordable housing between 01.04.2019 and 31.03.2020.

Additional Read: How to Claim Stamp Duty Exemption on Property

If you are looking to take a loan for housing construction, visit Tata Capital. We offer attractive home loan interest rates and flexible repayment options.

We encourage you to use our online home loan EMI calculator to compare different repayment options and see what works best for you. Our website also provides a home loan calculator to help you figure out the extent of amount you can avail. To know more, visit our website today.

New House vs Old House – Which One Should You Buy?

Are you having trouble choosing between a new property and a resale property? The new home vs old home dilemma is understandable, as both have their pros and cons.

But buying a home is possibly the most significant purchase decision you will ever make. You may even have to take on a home loan, which is a long-term commitment. Therefore, you must weigh your options carefully and not rush into any purchase without considering the following factors.

Price

New properties or projects are usually priced higher than resale homes, especially if they are fully furnished and ready to move in. To justify these prices, developers claim to have used high-quality, modern, and expensive construction materials and furnishing. You must verify these claims if you are leaning towards buying a newly constructed house.

If you are having difficulty arranging for finances to buy a new home, you could take on a housing loan. Many lenders offer an online home loan EMI calculator to help you explore different repayment options.

While old houses usually sell for less, you may end paying a significant sum on renovations and repair. Therefore, while making your decision, you must take the condition of the property into account, and anticipate the cost of refurbishing.

If the house is in a decent condition and does not require a lot of restoration, there is no reason not to buy it. A customised loan for renovation and repair is also an option you could explore. You could use an online home loan calculator to find an EMI plan that works for you.

Additional Read: How to Calculate the Resale Value of Your House

Energy efficiency

Nowadays, while developing a residential project, builders have to meet stringent energy efficiency standards. And not just appliances, wall coverings, roofs, doors, and windows have to be installed with energy efficiency in mind. Therefore, even though a new house may cost more, it could save you money on utility bills.

If you or a member of your family has allergies, asthma, or other respiratory difficulties, a new home could even help you cut down on medical bills. Many new projects include air filtration systems to improve the indoor air quality, thereby preventing these ailments from surfacing.

On the other hand, houses built years ago were not required to meet any of these standards. And even if regulations were in place, they were very lax. As such, energy efficiency was not a consideration back in the day. At best, it was an afterthought. Therefore, if you are thinking about buying a resale property, you must factor in the increased utility bills or the cost of installing energy-efficient solutions.

The bottom line

The answer to the new house vs old house debate will depend mostly on your personal preferences. It may be that the particular locality you are looking to move into, has no new residential projects. Or maybe you are a DIY enthusiast looking to buy an old property as a new project.

Additional Read: Want to Own a Home? Find Out How

Looking for a reputed lender to buy a house?

If yes, your search ends at Tata Capital! With our flexible home loan eligibility criteria, easy application, and attractive home loan interest rates, we can help you buy your dream abode.

To learn more about our home loan offerings or to use our home loan EMI calculator, visit our website today!

Things to Expect from the Indian Real Estate Sector in 2021

Buying a new house is a challenging task in itself, and the COVID-19 pandemic compounded this. The pandemic created major obstacles for thriving world economies. Closer to home, the Indian GDP experienced an all-time low, and the real estate market came to a halt. But as the year draws to a close, the real estate scenario in 2021 is set to improve, offering much-needed respite to builders and prospective homeowners.

Moreover, the supply-side is also expected to pick up as developers are providing lucrative offers and waivers to customers. Financial analysts have forecasted that the real estate in 2021 will set the market back on its feet.

So, for the would-be homeowners who had put their plans to purchase a home on hold, 2021 looks promising. Keep reading to learn about the top things to expect from realty in the coming year.

Expect rock-bottom mortgages

When purchasing a home, high home loan rates are a cause of significant financial duress for buyers that can take away from the joy of moving into a new house. However, the home loan interest rates are expected to be at a historic low, which will spur market-goers into buying homes.

Additional Read: Impact of Smart Cities on Indian Real Estate Industry

Strong buyer demand

Housing market predictions for 2021 are looking favourable for the buyer-side of the market. The lower mortgages combined with the already stalled process of home buying will spur customers to seal the deal and make the most of the situation. In fact, demand for move-in ready houses is expected to go up.

 In addition to this, taking home loan will also become easier for buyers as the rates are expected to decrease, making loans more accessible for all.

State and central government interventions

To decrease the cost of borrowing, the RBI has slashed Repo Rates down to 4%. Further, the Maharashtra state government took the step to reduce stamp duty to 0%, which was described as a win-win for the buyer and seller side. This caused real estate sales to increase by a whopping 300% between August and October 2020.

Additional Read: Five Real Estate Rules All Home Buyers Must Know

Wrapping up

Purchasing a home during a pandemic can be a daunting task, primarily due to the uncertainty of circumstances. One way to make things easier is by availing the services of Tata Capital. Using our home loan EMI calculator, you can get a fair estimate of the EMIs payable beforehand.

Further, Tata Capital offers some of the most competitive interest rates, flexible repayment terms and EMI options to make the loan-taking process as customised as possible.

We provide tools like an online home loan eligibility calculator, using which you can get a clear picture of the amount you are eligible for, right from the comfort of your home. The stage for the 2021 real estate sector is set, and the rest is up to you!

So, visit Tata Capital’s website today and finance your home purchase with ease.

Minimalist House – The New Trend of 2021

In the 21st century, life is full of excesses. Whether it is food, apparel or housing, the displays of opulence can get tiring to keep up with.

However, amid all of this, minimalist housing is a fast emerging trend to be reckoned with as it truly captures the spirit of ‘less is more’. There are a lot of benefits of minimalism in housing, starting from increased functional space and a decluttered household.

Incidentally, the real estate market is expected to pick up in 2021 and now would be the best time to design the minimalist home you have always dreamt of. Read further to learn about the positives of minimalist housing and how to get competitive home loan rates.

Benefits of minimalist housing

The philosophy of minimalism dictates a clutter-free way of living. The pros of a minimalist style home are many and varied. Not only does minimalist housing free up space for movement, but it also eases the excessive stimuli and induces a stress-free way of living.

There are multiple documented advantages of minimalist houses, including positive effects on the psychological well-being of the residents.

Besides, minimalism gets rid of unwanted items that can free up a lot of cash, making it easier to manage your finances and repay the home loan. It also eliminates the expenses of regular maintenance and upkeep of interiors, thus making it a cost-effective option.

Additional Read:  10 Benefits of Taking a Home Loan

Psychological upsides of minimalism

With a reduced focus on unnecessary material possessions, you can pay more attention to your interests and enjoy greater peace of mind. Clean, spacious surroundings help the body and mind relax. Furthermore, living in minimal surroundings shows improvements in happiness, creativity and productivity.

How can you get the perfect minimalist home?

The first step in creating a minimalist paradise is purchasing the perfect home. In addition to that, financing real estate can be a tedious process, but nowadays lenders have introduced convenient options like online home loan EMI calculator. Using this tool, you can calculate the EMIs even before finalising the loan.

Additional Read: How to Make Financial Planning Easy with Home Loan EMI Calculator

Further, tools like the home loan eligibility calculator allow you to test whether you are eligible for a particular loan or not. These measures have made it extremely convenient to acquaint yourselves with the nitty-gritty of various housing finance options available during the pandemic.

Over to you

Are you wondering how to finance your minimalist home? Look no further than Tata Capital, whose easy home loan eligibility makes it the preferred choice for customers!

With over ten years of success in the industry, Tata Capital’s housing finance options are easy to avail, owing to competitive home loan interest rates, Flexi EMI options and unparalleled customer assistance.

Using the multiple home loan calculators, you can measure the interest rates and EMI as per the tenure of your choice. So, don’t hesitate and visit Tata Capital’s website to finance your minimalist home today!

Why Should You Use Your Annual Bonus to Prepay Loans?

How should you use your annual bonus? Should you use it to spend, invest or prepay home loan? These are the pressing questions that arise when you receive a yearly bonus. Although it might sound tempting to spend the lump sum amount to make a heavy-duty purchase, it could be more beneficial to use it for prepaying a home loan.

All earning individuals are aware of the monthly bondage of EMIs, which greatly hampers their ability to save money for the long run. However, correctly leveraging an annual bonus can significantly reduce your EMI burden. Here are some benefits you can avail by using your annual bonus to make a pre-emptive loan payment.

Get quicker respite from EMIs

The first variable to be considered when repaying a loan is the tenure. Using your annual bonus, you can make early repayments in parts and significantly cut down on the tenure. Suppose you take a hefty home loan with a term of 15 years. The full or partial amount of the annual bonus can help you to make smart prepayments and bring down the repayment period.

Prepayment helps you save

Many people get involved in the dilemma of saving versus using the bonus to prepay loans; however, making an early repayment can save you from the sky-rocketing home loan interest rates. When you make a prepayment, the tenure gets reduced, and you can conclude repayments quickly. This can save up to lakhs of rupees that would have accumulated as interest rate on the loaned amount over the years. Prepayment also ensures that you do not end up shelling out hefty amounts as interest rates in the long run.

Additional Read: Dos and Don’ts for a Home Loan Prepayment

Things to consider before you decide to prepay your loan

Prepayment of loan can be beneficial in the long run, but there are specific home loan prepayment rules you should be aware of. When you make a full or part-prepayment, the lenders incur a loss, which is why they levy a foreclosure fee. The pre-closure fee depends on the rate set by the lender along with the loaned amount.

When you make a part-prepayment, the lender considers the remaining amount as the principal amount and levies an interest rate on it. The interest rate can differ based on your lending institution. To ensure transparency, you can use home loan calculators to forecast your interest and EMI.

Additional Read: 5 Things to Consider Before Home Loan Prepayment

Make an informed choice

Paying off loans before the stipulated period is a good idea when you have job security and a certain amount saved as an emergency fund. Moreover, the timing of prepayment is crucial, as it can make or break your savings. Prepayment in the initial period is generally more beneficial as it can significantly reduce your EMIs for the upcoming years. Today, you can also use home loan EMI calculator to get an estimate of your EMIs.

If you wish to get loans at competitive rates that allow for prepayment options, Tata Capital is your best option. We offer loans at basic home loan eligibility along with full or partial prepayment options as per RBI guidelines and full transparency of foreclosure charges.

What’s more, you can even use our online home loan eligibility calculator to get information about the amount you are eligible for and get the most attractive home loan rates based on your eligibility.

To know more, get in touch with us today!

Top Scenarios When Personal Loan Balance Transfer Sounds a Fruitful Option to Avail

Assume a borrower X obtained a personal loan from a financial institution called ABC and paid hefty EMIs every month for a year. Now, faced with new financial commitments, X cannot afford to service the loan with ease. How can he/she reduce their financial burden?

In such a case, borrower X can avail a personal loan balance transfer and switch to a lender XYZ, who not only offers lower interest rates but also, better loan terms and services. That way, X can enjoy the reduced interest rate and save more on the EMI outlay.

Put simply, a balance transfer is a type of loan facility which allows borrowers to move debts from one lender to another, mainly for lower interest rates and better loan terms.

But when does a PL balance transfermake sense? Here are the top scenarios.

To secure a lower interest rate

Your EMI amount mainly comprises of two components – principal amount + interest. Thus, if personal loan interest rateshave dropped by more than 1% over your loan tenure, a loan balance transfer can be a lucrative choice to lower your EMI burden remarkably. 

Especially if you are in the first half of your tenure, you can switch to save more on the interest component. And consequently, increase your monthly savings as well.

For better loan features

On the contrary, if your monthly income has increased or your expenditures have reduced, you can do a balance transfer to secure better loan features – lower interest rate, customer service, top-up facility, and more.

For instance, you can switch to a new lender to avail a shorter tenure and cut down the overall cost of the debt. In such a case, however, make sure to use a personal loan EMI calculator to estimate your new EMI amount before you finalise the switch.

To procure additional funds 

In addition to a lower-interest rate, a balance transfer also allows you to secure additional funds. If your credit health has been satisfactory, you can easily avail a top-up loan facility to borrow extra money or increase the loan tenure to reduce the EMI payments on the previous amount. In this manner, you can save money on the monthly outgo comfortably. 

Besides, the eligibility criteria for balance transfers are usually the same as the personal loan eligibility criteria, such as:

  • Applicant must be between 22-58 years old
  • Applicant must earn at least Rs. 15,000 monthly
  • Applicant must have a minimum of one-year work experience 

Additional Read: How much Personal Loan Can I Get on My Salary?

Also, do remember a balance transfer typically comes with additional expenses like a processing fee and a foreclosure fee. But if the cost of a balance transfer is more than what you will save on the EMIs, best not to make the switch. To avail the best loan features, you must choose a lender wisely.

At Tata Capital, we offer lucrative terms on a personal loan, for self-employed and salaried individuals. Get bespoke finance solutions with a minimal documentation process by getting in touch with us today!

Perfect Itinerary to Plan a Snowy Winter Holiday in North India

This travel season, make sure you escape the monotony caused by COVID-19 even if you’re short on funds. With personal loan interest rates at an all-time low, avail of finance and travel to your dream destination.

We’ve listed some of the best locations where you can rejoice in snow and spend your winter holidays. Experience serenity as you travel through these magnificent locations in North India.

Manali (Himachal Pradesh)

 Manali is a very famous hill station in the Kullu district. It’s a perfect place to explore the culture of the state and feed your spirituality. There are many ancient temples here such as – Hadimba temple, Vashisht temple, Manu temple, Gayatri temple, and many more.

 For the adventurer in you, there’s plenty to do at the Solang Valley where you can enjoy paragliding, skiing, mountaineering, trekking, and zip-lining. Additionally, rowing, river crossing, and white-water rafting are also a common craze amongst the travellers here.

Old Manali has a great vibe that reflects in its cafes, eateries, and restaurants. With so much to do, Manali remains, for many, one of the most travelledtourist places in North India.

 Now, all these fun activities can drill a hole in your pocket! To avoid that, you can avail of a personal loan for self-employed or salaried individual and finance your travel easily.

Chakrata (Uttarakhand)

 Chakrata is a dream location for lovers of scenic beauty and is one of the most unmissable winter places in North India. With Tiger Falls being one of its must-see landmarks, it has plenty of awe-inspiring natural places to enthral its spectators. It has many caves and ancient temples. Snowfall is mostly seen here near the end of December during which thrill-seekers can relish skiing.

Additional Read: Top Places to Enjoy Snowfall in the World

There are numerous fascinating places like Kalsi, Kanasar, Kimona Fall, and Deoban. Deoban is especially worth visiting for photography-fans as its hilly terrains are captivating and picturesque. The highest peak, Vyas Shekhar allows tourists to witness the mighty Himalayan views in full glory.

You can sponsor your travel to Chakrata through a travel loan too! Just check your personal loan eligibility online, and you’re good to go.

Patnitop (Jammu & Kashmir)

Sitting at the height of 2024 meters, Patnitop is a hill-resort in the Udhampur district of J&K. It rests on a beautiful plateau in the Shivalik belt where thick forests of Kail and Deodar envelop it. Chenab River flows close to the location, enabling tourists to have stunning views of the Chenab basin.

 Try paragliding, sledging, and skiing in the pleasant meadows or unplug at the ancient temples – Patnitop should be on your bucket list of places to visit in North India.

Almora (Uttarakhand)

At an average altitude of 1683 meters above the sea level, Almora is a fascinating hill station that is spread across a ridge on Kashyap Hill. It is renowned for its diverse culture and is encircled by pines and old oak trees. It is also famous for its savoury cuisines, rich heritage, and distinctive handicrafts.

 We understand that travelling can weigh down your pocket. But, even if it seems out of budget, you can make it happen with a personal loan from Tata Capital. Our personal finance offering comes with low personal loan interest rates, flexible repayment terms and speedy processing.

Additional Read: Best Tourist Places to Visit in India for Your Post Quarantine Travel List

Before availing of personal finance, use our online personal loan EMI calculator to figure out how much EMI are you comfortable paying.

To know more, get in touch with us today!

What are Green Homes? What are the Benefits of Environmental Friendly Housing?

When it comes to real estate, eco-conscious and aware consumers prefer green homes as their abode. Add to it, low home loan interest rates these days, are letting potential buyers comfortably plan their finances.

Wondering what green homes are?

Green homes are houses built with sustainable, environmentally-friendly, energy-efficient, and recyclable resources. These dwellings are constructed in such a way that water, air, solar, and geothermal energy are optimally utilised, thus reducing energy waste.

Hence, there are a lot of benefits to living in these eco-friendly houses that are listed below.

Enhances comfort

Green homes offer fantastic thermal comfort, which is essential for bearing extreme summer and winter seasons. Sustainable housing in India comes with excellent indoor air quality as the material with which the home is constructed keeps the temperature optimal, thus making you feel comfortable.

Since these homes are well-insulated, they reduce exterior noise. And, a reduced amount of disturbance leaves you feeling peaceful all day.

Additional Read: What are Green Buildings and Green Homes?

After reading this, if you want to buy an eco-friendly property, but are falling short on funds, avail a home loan for green housing.

Improves quality of life

People who opt for green housing are healthier because the substances utilised in its creation are eco-friendly and less toxic. For instance, the usage of plastic is reduced or eradicated, and we all understand how toxic plastic is.

Reduces carbon footprint

Know that by owning an eco-friendly property, you significantly contribute to the environment as these structures reduce greenhouse gas emissions and usage of plastic. Environmentally-friendly homes are also energy-efficient and made from recyclable materials that reduce your carbon footprint.

What’s more, these houses have a high resale value due to their growing demand in the market. And, with incredibly attractive home loan ratesthese days, financing one is no problem.

Optimises expenses

Green homes are optimised to use sunlight, which means you save on the cost of artificial lighting. The windows are made such that there is an adequate amount of ventilation, and solar energy panels are used to generate electricity.

These homes are made to recycle and reprocess the waste products they generate. The ultimate point being that sustainable houses decrease your rising electricity and water bills along with other maintenance charges. All of this eventually drops your monthly expenditure. Furthermore, given the relaxed home loan eligibility criteria these days, you can buy one without much hassle.

If you are wondering whether or not you can avail of housing finance, go online and use a home loan eligibility calculator.

Employs sustainable construction practices and materials

The materials used in building sustainable houses are eco-friendly. Biodegradable and green material is used, which in turn reduces waste and uses less amount of water.

Also, more effort is put into assembling these structures. Hence, they are more durable when compared to non-green ones.

The bottom line

You can lead a better and healthier life along with financial benefits if you opt for green housing. After all, when you invest in sustainability, you achieve many goals while being an environmentally conscious and responsible global citizen. And, with reliable home loan EMI calculators available online, you can also evaluate your loan affordability in a jiffy.

Additional Read:  Top Eco friendly Real estate Properties in India

Looking for a credible lending institution?

Buying or getting your home constructed is a big move in everyone’s life, and Tata Capital is always there to provide home loans for green housingat attractive interest rates.

To know more about our housing finance offerings, get in touch with us today!

Top Eco-Friendly Real Estate Properties in India

Do you know India already has a thriving demand for green structures?

Several homebuyers are opting for a more sustainable lifestyle, and many developers are constructing eco-friendly properties.

Such developments are a step towards a sustainable society, which is the need of the hour. If you plan on investing in an eco-friendly dwelling, you can easily avail of a home loan.

You can enjoy quick housing finance options from reputed lending institutions today. But before you can select the right financial lender offering attractive home loan rates, you must look at the following eco-friendly real estate properties for sale.

Mantri DSK Pinnacle

Located in Bengaluru, Mantri DSK Pinnacle is an ultra-luxurious residential project. It is a 46-storey skyscraper that offers top-notch smart facilities with eco-friendly homes. The gold standard building boasts rainwater harvesting systems, energy-efficient interiors, organic waste management, BEE-rated home appliances, and 90% open spaces.

The property is certified by Leadership in Energy and Environmental Design (LEED). A centralised air conditioner with individual controls ventilates the housing units. The developer used adept architecture to craft the place, and its premium features such as a helipad make it the perfect place to live.

If this property is already on your radar, but you are holding back due to a shortage of funds, apply for housing finance – especially now when home loan interest rates are at an all-time low.

Mahindra Splendour

Designed per the guidelines of Indian Green Building Council (IGBC), Mahindra Splendour is situated in Mumbai. Mahindra Lifespaces has brought the vision of green homes to life with this project. The houses in the 80,000 sq. ft complex have superior insulation materials and modern-day paint. Additionally, the housing units in the project offer optimal indoor ambience, along with large expanses of greenery.

Additional Read: What are Green Buildings and Green Homes?

Vascon Windermere

Situated in Koregaon Park, Vascon Windermere is another IGBC pre-certified project. From a judicial mix of 3,200 plants to solar PV cells, this Pune real estate is the ideal fusion of sustainability with technology. It is spread over an area of five acres and has 80% of open space.

Apart from its inclination towards being an eco-friendly house, it has several provisions that cater to differently-abled people. It has disabled-friendly parking, braille buttons in lifts, and audio assistance, among others. It boasts a waste treatment plant, alongside a water and sewage treatment plant. You can also enjoy cutting edge tech solutions such as motor sensing lighting in the Vascon Windermere housing complex.

If you are planning to invest in any of these properties with the help of housing finance, check your home loan eligibility online, before starting your application.

Additional Read: Impact of Smart Cities on Indian Real Estate Industry

Wrapping up

Green real estate directly impacts energy conservation and thus, rewards its residents with a healthy living environment. However, affording such a property can be challenging for a middle-income homebuyer. For this, you can apply for housing finance. A home loan EMI calculator will help you to arrive at the perfect loan tenure and instalment amount for your dream abode.

Looking for the right Lender?

Tata Capital is a perfect choice if you are seeking a home loan. We provide you with quick loan processing. Furthermore, our online EMI calculator for home loan can enable you to evaluate your monthly instalments correctly. Once, you finalise the best possible green property for you, get in touch with us and buy your eco-friendly abode.

Why is 2021 the Best Time to Buy a House in India?

It is no secret that the coronavirus pandemic has disrupted the housing market to a great extent. And, the Indian real estate sector, which was already experiencing a shortage of growth, was hit the hardest.

Moreover, the would-be homeowners had to pause their plans to avail of housing finance to purchase a property. However, the home loan market is slowly picking up, and the coming year might be the best time to invest.

As a real estate recovery is in the cards, 2021 promises to be the best time to make a home purchase in India. Although the builders, who have been reeling from an economic slowdown since the last few years seem reluctant to drop prices, other external factors have come into play to ensure a quick market recovery from the pandemic.

Are you looking for a home buying guide in India? Here are some of the reasons why purchasing real estate in 2021 could be the best bet for aspiring homeowners.

Additional Read: Home Buying Guide: For Buying a House in Top Indian Cities

Low-interest rates

Financial analysts have predicted that the interest rates at which one can avail housing finance will experience a significant drop in 2021. Although housing prices might increase, the home loan interest rates will be at an all-time low, making this a favourable period to lock the offer.

Moreover, for those who have a stable income, job security and fit the home loan eligibilityset by their preferred financial institution, 2021 will fare well for prospective home buying. To boost customer sentiment, the RBI has also reduced their Repo Rate to just 4%.

Government interventions

To pick up the pace of the economy, the government has also intervened in the real estate sector and made provisions for buyers and sellers. The Finance Ministry has introduced measures such as tax reliefs so that people can buy a house in India without hesitating.

The Finance Minister has increased the differential between circle rate and market rate to 20% from the earlier 10%. This will provide an immense income tax relief to customers, who can buy a home at a 20% lower circle rate without attracting tax. It will also provide a significant improvement in home loan rates.

How to make the right choice?

The post-COVID housing market is likely to experience a drop in rates, much to the benefit of prospective home buyers. Thus, they should carefully consider the principal aspects and make a practical decision.

Additional Read: Five Real Estate Rules All Home Buyers Must Know

If you have decided to take the big leap and purchase your own home in 2021, then Tata Capital is the lender you need to get lucrative financing options. When taking a loan, use the home loan EMI calculator to get accurate EMI forecasts and choose from standard or Flexi EMI options.

Further, Tata Capital’s home loan eligibility calculator is highly beneficial in calculating the loan amount you are eligible for. Visit Tata Capital’s website today and finance your move into your dream home today!