Know: Features And Benefits Of Home Loans

Apply for a housing loan today, to build that dream home of your choice. It true, that many major cities are moving to self sustained, full furnished apartments and green ones. If building a home isn’t a choice, then there are always ready to move in apartments/ villas.

So, what’s stopping you from buying one? You’re just a step or 2 away from availing a home loan. Home loans cater to all the government polices depending on the lender you avail from. Let's look into their advantages in this blog.

Advantages of Home Loan

Below are some of the benefits of a Home Loan.s

High loan Value

Banks typically provide financing of 70% to 90% of the market value. In order to acquire a property or build a house, Housing Loan with the help of Home Loan EMI Calculator can help you make the right choice.

Calculate the loan money you can acquire and the down payment you need to pay

Multiple End-uses

Individuals apply for Home Loans to buy any property they like. For example, they can use the loan cash to purchase a piece of land, construct a unique house on land they own, buy brand new, pre-used, or under-construction possessions, etc. They can actually refurbish or renovate their home with budgets received through a Home Loan.

Choice of interest type

With Home Loans, individuals can select fixed or floating interest rates. They can choose a fixed-interest loan, their EMI will be the same till the loan tenure. Contrarily, if they choose floating-interest Home Loan, their EMI will depend on applicable interest rates depending on the real estate market. In a market, where the recognition for Home Loans is less, the floating interest Home Loan EMI can reduce greatly.

Flexible Repayment Tenure

Also, can repay Home Loans in periods enduring up to 30 years. More elongated tenures are translated to be lower and pocket-friendly (EMIs) Equated Monthly Instalments. Flexibility like this makes Home Loan an absolutely attractive option for you.

Tax Benefits

Some other benefits of Home Loans are their tax benefits.

• Section 80C under Income Tax Act, 1961, individuals can avail of tax benefits up to Rs. 1.5 Lakh on the principal repayment.
• Under Section 24, people can proclaim up to Rs. 2,00,000 as a tax deduction on the Home Loans interest repayment component.
• If they are first-time homeowners, they can acquire a tax advantage of up to Rs. 1.5 Lakh underneath Section 80EEA. The Home Loan should be sanctioned from 31st March 2019 and 1st April 2022.

Minimal Prepayment Charges

Another benefit of a Home Loan exists that banks mostly do not impose prepayment costs if individuals decide to repay their loan before the specified tenure. Prepayment is solely applicable if they close their loan before the loan repayment term or choose floating-interest Home Loans.

The Bottom Line

Home Loans are the most suitable way to complete the dream of purchasing a property. However, with so many lenders in the market, it can take time to choose the right one. Remember to look around various lenders before committing to a Home Loan provider.