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8 benefits of home loan

8 benefits of home loan

should one take a home loan if they don't have enough money? check out 8 benefits of home loan before making a random decision.
February 17, 2021
5 min read
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8 benefits of home loan

Benefits of Home Loan

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a home is more than a space occupied by standing walls and furniture; it is a place of countless memories. and it is a huge step forward when one plans to buy a home of their own, but there are several financial hurdles on the way.

however, the ray of hope that home loan makes things easier for almost all kinds of hurdles. so, if you are wondering how that happens, read on to find out and buy your own address right now.

  1. nurture your funds: you might have a stable job and the ability to buy your own home, but what if you can invest your money in more than one area of investment? yes, you read that right. with a home loan in the picture, you can continue to pay your loan installments and on the other hand invest your money into any other scheme as well and nurture it further.
  2. save on interest: many a time people think of liquefying their existing resources to buy a home under the impression that all loan schemes charge a hefty loan interest. on the bright side, home loans are one of the most affordable loans in the market today. if you want to be sure of that, pull up any other loan calculator with a home loan calculator and compare the results.
  3. assured verification: when home loans are approved by banks after thorough diligence from the bank approved teams and employees. hence, projects and home loans approved by banks offer a sense of assurance to the buyers like you. although, the banks check your background and stay prepared with a home loan eligibility calculator and apply smoothly.
  4. tax benefits on interest paid: as per the income tax act, a home loan payer can seek tax benefits up to ₹ 1.5 lacs. this benefit is solely applicable to the loan issuing authority's interest when filing the income tax return for the financial year.
  5. tax benefits on principal: as per the updated section 80 cce of the it act, the principal payment amount (up to ₹ 1 lacs) of the approved home loan is permitted to be considered a part of annual income and provided certain conditions are met.
  6. high long term returns: houses are not meant to be moved from time to time. buyers like you seek a home that offers comfort for the rest of the life and a home loan that assists in it. with emis in the picture, home loans have become affordable, but the purchased houses are now being sought as a future investment and increasing the property's capital appreciation.
  7. know that you've accomplished: be it with the help of dealers or home loan emi calculators, you ought to know that you've achieved a milestone in your life - a milestone that provides a sense of accomplishment, stability and safety.
  8. save on processing fees: a major investment made while buying a home is made in processing fees. hence, it is in your best interest to know that processing fees qualify for a tax deduction. the it act considers them as interest and hence qualified for tax deductibles.

so make sure you get the best of affordable homes in your budget and eligibility with the above saving tips in mind.