A home is not merely a roof over the head and four walls that shelter against unwarranted elements. It is a house that is made up of bricks and beams; a home is made up of hopes and dreams. Every person desires to have this safe haven of their own.
Do you also desire this? Do you need a bigger space or some respite from your nagging landlord? Is a lack of funds is keeping you from chasing your long-held dream? Whatever your reason, you can choose to become a homeowner today by applying for a home loan.
Let us look at the top ten benefits of availing a home loan.
1. A Place to Call Your Own
Besides the sense of accomplishment that comes with timely repayment of a home loan, it also gives you a place of your own where you can live peacefully and securely with your loved ones.
2. Tax Benefits
The Government of India provides tax subsidy on housing loans. An individual is eligible for a tax rebate of up to Rs. 1.5 lakhs under Section 80C, and up to Rs. 2 lakhs under section 24B. These deductions cannot be availed for homes that are under construction.
Additional Read – Get All The Details For Tax Deduction Under Section 80C, Section 80EEA
3. Improved Credit Score
Paying off your EMIs regularly improves your credit ranking and increases your home loan eligibility on a second property, should you ever buy it. A good record on home loan prepayment also makes you eligible to easily get education loans, medical loans, etc.
4. Low Interest Rates
Home loans have long tenures and are offered in both fixed and floating interest rates. In case of floating home loan interest rates, you will most likely benefit from falling ROIs at some point in your cycle.
5. Appreciating Asset
Real estate is an appreciating asset. Taking a home loan enables you to buy a property today that is bound to appreciate tomorrow. Given that India is a young country with more and more people aspiring to buy homes, residential real estate will continue to be a profitable investment.
6. Remain Liquid
If you have liquid funds with you, it is better and wiser to save or invest them. Life is unpredictable and has its way of unsettling our plans. If you end up using all your current funds on purchasing a home in a single payment, you might face a liquidity crunch in the future. Home loans let you stay liquid, while you pay only a part of your income in the form of home loan EMIs.
7. Relief from Rent
If you are currently living on rent, you are familiar to its man woes. If you’re not someone who needs to change cities frequently, buying a home by applying for a home loan may be the ideal option. It will not only give you the freedom to decorate your space and live the way you please, but you can make enough room for your kids to have a private space of their own.
8. Refinancing Facility
In the case of housing finance, you can transfer your loan to a different lender if they offer you a lower ROI. If you are not happy with the ROI on your home loan right now, or your financial institution has poor customer service, you can refinance your loan with a new lender offering lower home loan interest rates and better customer support.
9. Due Diligence of Property by Lending Institutions
Lending institutions approve a home loan only after they have thoroughly verified your home loan application, documents, legal clearances, even property. This is of huge benefit to you as it reduces your risk of financial repercussions to a great extent. After all, an approved project is safer than an unapproved one.
Additional Read – Detailed Guide on How to Buy a House in India
10. Long Repayment Tenure
Home loans are the only loans that allow a repayment tenure of up to 30 years. So, you can reduce the burden of your EMIs by extending the tenure. Use a simple online tool such as the home loan EMI calculator to know how your EMI will change with the change in tenure.
Now that you know the world of benefits offered by home loans, you can take the plunge and begin this exciting journey of homeownership today! Turn to Tata Capital – we offer customised home loans with easy accessibility, affordable interest rates, and structured EMI options. Visit our website and know more about our home loan offerings today!