Everyone dreams of owning a house, but property prices are rising rapidly. In this situation, buying a home has become difficult for the middle class. The only option left to fulfill this dream is a home loan. Many people believe that taking a home loan increases financial pressure. However, despite this, a home loan offers several benefits. Let’s find out how.
Home Loan Interest Rates
Home loan interest rates are lower compared to other types of loans. This makes home loans more affordable for people. Additionally, the repayment process is simple, with options for prepayment and foreclosure.
Income Tax Benefits
Taking a home loan can help you save a lot on income tax. Under Section 24(b) of the Income Tax Act, you can get a tax rebate of up to ₹2 lakh per financial year on interest payments. Under Section 80C, you can claim a tax exemption of up to ₹1.5 lakh on principal repayment.
If you take a joint home loan with a co-applicant, both applicants can claim separate tax benefits, saving up to ₹7 lakh in total.
Buying your own #home requires long-term planning. We make it easier with a completely online #HomeLoan process- https://t.co/1eKoNtTPgk pic.twitter.com/GIC9328HRX
— Sammaan Capital (@sammaan_capital) May 30, 2017
Property Verification by Banks
When you buy a property through a home loan, banks thoroughly verify the property records. This ensures that the property is legally safe, giving you added security.
Top-Up Loan Facility
After taking a home loan, you can also apply for a top-up loan if needed. These loans come with lower interest rates and flexible repayment options, making them convenient.
Special Benefits for Women Co-Applicants
If you take a joint home loan and add a woman as a co-applicant, you may get a lower interest rate compared to a standard loan. This makes home loans even more affordable.
