Home Finance Why Every Home Buyer should Consider Home Loan

Why Every Home Buyer should Consider Home Loan

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A home loan is an excellent financial product that helps people buy their own houses. Most people in India opt for such loans when buying a house. Why is it so?

Home loans usually make easy the process of purchasing a house. They are also one of the cheapest loans available in terms of the tenue. Most importantly, a home loan is often the only way a person can buy his dream house. It helps you acquire a tangible asset whose value appreciates over time.

If you plan to buy a house, make sure you consider taking a home loan. Read on to know why you should do so.

Reasons Why You should Apply for a Home Loan

Here are the top reasons why you should get a home loan when buying property:

  1. Makes the Purchase Possible: First and foremost, a housing loan gives you the opportunity to own a house. A house usually comes with an extremely high price tag.  And not everyone has been born with a silver spoon in his/her mouth. You may not have a large sum of money lying at home or in your bank account. So, a home loan becomes your passport to a home of your own. It helps you realise your ultimate dream.
  2. Helps you Save Tax: A house loan is a great tax-saving tool. The EMIs you pay are tax-deductible, up to a maximum amount of Rs 1.5 lakh a year. Please note that the tax benefits begin only after the property is constructed. You cannot expect tax rebates when your house is under construction.
  3. Easily Available: Home loans these days are available very easily. Modern-day banks and non-banking financial companies offer instant approved home loans. You can get an instant approval and get the loan processed in a few hours. Of course, you need to meet the eligibility criteria for that.
  4. Flexible Repayment Options: It is important to get a home loan on correct terms—the repayment structure should be favourable. Most loan providers now offer flexible repayment options. You can use an online housing loan EMI calculator to see what your EMI plan will be even before the loan is taken. A little bit of planning and preparation goes a long way to ensure smooth repayment of the loan.
  5. Prepayment Option: Unlike in other types of loans, you are not penalised for making pre-payments on your house loan. This is a major advantage as you get to close your house loan earlier if you are financially able to do so.
  6. Freedom from Rents: Last but not least, you get complete freedom from the rent cycle. When you pay rent for your house, you don’t get anything in return. If you buy a house, the same amount can go towards your housing loan EMI. Now, you have a healthy investment to fall back upon. A home is a big investment and a housing loan allows you to make this investment in a hassle-free manner.
READ  3 Ways to Survive a Tax Audit

Identifying a Good Lender

It is absolutely crucial to opt for a good loan provider. Gone are the days when you blindly asked your bank for a loan. Many reputed non-banking financial institutions also provide attractive loans schemes at the lowest home loan interest rates these days.

The best thing is that you do not have to face the hassles of detailed paperwork anymore. The documents required for home loan  are rather basic and straightforward. This helps you to seal the deal in a fast and easy manner.

Final Word

Clearly, a home loan is an excellent financial tool that you must take full advantage of. Choose a good lender and look for the best available home loan interest rates. Get the home loan, buy the house, and start living in it on your own terms.

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