Some people are afraid of taking a home loan and going into debt. The idea of having to commit a good part of their monthly salary towards and outstanding loan seems like a scary prospect to them. Other lenders do not wish to pay the price of housing loans, otherwise known as the interest.
However, keeping in mind these two considerable issues with a housing loan, there are plenty of reasons why they still make great financial sense and this article will highlight 5 of these reasons that will, hopefully, help you see these financial products in a different light.
1. They make buying property easy.
Anyone with plans to own property in India will be met by a huge hurdle in the form of the real estate prices; which, in today’s day and age, seem to be shooting through the roof and rising at an exponential rate.
However, opting for a home loan will ensure these exuberant property rates do not thwart your homeownership plans. These financial aids provide you a major chunk of the funds you need to fulfill your purchase plans.
2. Home Loans help you buy into one of the best investments ever - property.
However, keeping in mind these two considerable issues with a housing loan, there are plenty of reasons why they still make great financial sense and this article will highlight 5 of these reasons that will, hopefully, help you see these financial products in a different light.
1. They make buying property easy.
Anyone with plans to own property in India will be met by a huge hurdle in the form of the real estate prices; which, in today’s day and age, seem to be shooting through the roof and rising at an exponential rate.
However, opting for a home loan will ensure these exuberant property rates do not thwart your homeownership plans. These financial aids provide you a major chunk of the funds you need to fulfill your purchase plans.
2. Home Loans help you buy into one of the best investments ever - property.
The rates at which property prices are going up make real estate in India one of the best investment opportunities out there. Unfortunately, to buy into this lucrative investment, you’d need to have a sizeable amount of funds. The kind of funds you can easily procure through a housing loan.
With a housing loan, you can invest in Indian property and become a homeowner much quicker as opposed to waiting for an eternity to save the money you need to buy and invest in real estate in India.
With a housing loan, you can invest in Indian property and become a homeowner much quicker as opposed to waiting for an eternity to save the money you need to buy and invest in real estate in India.
3. Favorable interest rates.
Another very good reason to opt for a home loan today is the interest rates on offer. In fact, there’s probably no better time to opt for housing finance keeping in mind the fact that today’s rates are the lowest they’ve been in housing loan history. Some experts even predict these rates to fall further in the future, which could provide you additional savings in time.
4. PMAY CLSS.
Our government’s initiative to provide housing for all has brought into play a beneficial scheme known as the Pradhan Mantri Awas Yojna Credit Linked Subsidy Scheme that aims to help people from medium to low-income groups save substantial amounts of money against a home loan.
As long as your annual household income doesn’t exceed Rs. 18 lakh, you can save up to 2.67 lakh using the interest subsidy provided under this scheme.
5. A home loan can help you save taxes.
The principal repayment amount and the interest payments you make, combined, can you give you access to tax deductions of up to Rs. 3, 50,000 per annum under section 80C and 24 of the Indian Income Tax Act respectively. Approach any lender or financial expert and they’ll tell you the break-up of these deductions and how you can use this benefit to your advantage.
So if you’ve sidelined the idea of a home loan, make sure you’ve factored in the above points before making a concrete decision against opting for one.
Another very good reason to opt for a home loan today is the interest rates on offer. In fact, there’s probably no better time to opt for housing finance keeping in mind the fact that today’s rates are the lowest they’ve been in housing loan history. Some experts even predict these rates to fall further in the future, which could provide you additional savings in time.
4. PMAY CLSS.
Our government’s initiative to provide housing for all has brought into play a beneficial scheme known as the Pradhan Mantri Awas Yojna Credit Linked Subsidy Scheme that aims to help people from medium to low-income groups save substantial amounts of money against a home loan.
As long as your annual household income doesn’t exceed Rs. 18 lakh, you can save up to 2.67 lakh using the interest subsidy provided under this scheme.
5. A home loan can help you save taxes.
The principal repayment amount and the interest payments you make, combined, can you give you access to tax deductions of up to Rs. 3, 50,000 per annum under section 80C and 24 of the Indian Income Tax Act respectively. Approach any lender or financial expert and they’ll tell you the break-up of these deductions and how you can use this benefit to your advantage.
So if you’ve sidelined the idea of a home loan, make sure you’ve factored in the above points before making a concrete decision against opting for one.
We hope this article has been helpful and wish you all the best!
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