Every individual has a dream of buying and owning their own dream home, but the high estate price often makes it very difficult for most individuals to buy the house of their dreams. Home loans can not only be availed to purchase a new home or land in order to build a home. You can also apply housing loan online to renovate your residing home and do not have the funds to. Here is a list of reasons stating the benefits of availing of a home loan;
Table of Contents
· Tax Benefits
Every individual who is proceeding with a home loan in India has extensive benefits as the Government of India facilitates a tax subsidy on housing loans. Every individual is eligible and allowed to claim a tax reduction of up to Rs 1.5 Lakh under section 80 C of the income tax 1971 act.
· No Prepayment Charge
Individuals availing of other loans apart from home loans are required to pay a prepayment penalty; however, the individuals who have taken home loans do not have to make any such penalty. On any occasion where an individual has surplus money, it can be utilized to make a payment towards the home loan.
· Balance Transfer
On occasions where you can avail of another bank that is providing you with a much lower interest rate than your current bank, you can transfer your loan to that loan to receive the following facility.
· High repayment tenure
Home loans are loans with one of the longest tenures for repayment. You can choose the longest repayment tenure in order for low interest home loans. You can use this facility in order to lessen your monthly EMI burden.
· Capital appreciation
The house you build or buy will be an appreciating asset. Real estate is one of the most rising and profitable investments any individual can make. The house you build today will have more financial value in the upcoming years.
· Improve Credit Score
On occasions where you pay off your EMI regularly, it improves your credit score. The rank of your credit score increases, and therefore it increases your eligibility of you to secure another loan for any other purpose that you may have. A good or decent track record on your home loan makes it easier for you to secure other loans such as car loans or medical loans.
· Relief from Rent
If you are a fixed resident in a city and you have to reside at a rental home or apartment. Home pans are one of the best options out there for you. It is one of the ideal choices out there for you. Home loans can be very convenient and give you the added facility of owning a space all by yourself.
· Remain Liquid
If you are one of the individuals who have a lot of liquid funds, it is a wiser choice for you to secure your funds and make necessary investments. Utilization of all your funds in order to make any major changes may not be one of the most beneficial choices; therefore, it is always the best option to go with a home loan.
To Conclude
If you are weighing your pros and cons before you move forward with a home loan, here is a list of all the benefits that you will get if you wish to take a home loan.