Benefits of Getting a Home Loan

Urgent financial requirements and emergencies often befall us without warning and require expert solutions in order for them to be curbed. Whether it be personal or business related, there definitely comes a time when you would require some kind of a loan.

Coming to that, it needs to be specified that property rates have seen the steepest rise in the metro cities with the percentage going very high in most of these.

In light of such a situation, economists are of the opinion that despite such high property rates, people will not shy away from buying properties at the nicest and most well connected areas of the cities and therein lies the importance of a home loan

These loans have made it possible for people from not only the upper strata but also the middle class section to own properties in posh localities of the city.

Let us acquaint you with the various benefits of acquiring a home loan.

Increasing day to day capital

If you are shying away from taking a loan because of the long term commitment of monthly payments or EMIs then, it will be good to understand that property rates have been on the rise in recent times.

This means that even after you have completed paying off the loan, the rate of your property will continue to rise, its resale or rent value is going to keep soaring and will be more in the future than they are now. There may be a scenario where you can earn almost double of what you paid for the loan.

Better eligibility for credit

When you take a home loan and have completed all your EMIs within the period you had fixed at the time of taking the loan, there are a number of options that open up for you. Some of them have been discussed below:
  • Complete ownership of the home will enable you to acquire loans against it
  • Possessing an asset such as a home whose loan has been completely paid off will enable you to apply and get approved for any future loan amounts that you may need to take up
  • Size of asset plays a big role in getting approval for future loans and in this regard, nothing can be better than an owned home
  • Loan against properties are usually secured loans and thus have lesser rates of interest

Various tax related benefits

One of the most important benefits of a such loan is the tax related advantages that you become eligible for. If you opt for the scheme of principal repayment, you can avail certain deductions on the payment of the original amount.

This benefit is ensured by the constitution’s Income Tax Act in Section 80C wherein you can avail a deduction of up to one and half lakh on your property. Similarly, your interest payouts are also eligible for tax deduction under Section 24 (b) of the Income Tax Act, 1961 with a limit of Rs. 2,00,000 in a given financial year

It, therefore, goes without saying that taking a loan may seem like a wary option but in the long run, it serves as a great advantage in not only acquiring a property in a locality of your choice but also to have greater credit eligibility and increased financial credibility. “Finserv Markets, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”

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