Why home loan?
A dream common in most of us is to have our own house and to make it happen true a lay man strive through many ups and down through his life and struggle hard on daily chores to plan for this investment via meeting his own and family basics. Sometimes, needs to cut down unwantedly.
Buying a house is a dream for many and involves a lot of financial planning. Is having an own house easy, especially in urban cities? The answer is Yes! Let’s see why and how? One main reason to dream so and make it come true is to apply for hassle free home loan. Now a days, the definition of a loan has changed from an accumulative debt or liability to an advance payment which can be pay back through easy financing.
Let’s see how?
10 good reason to apply for home loan
1. Monthly income is no more constraint
Loan amount is proportionate to the monthly earnings. Higher the amount, higher would be the eligibility to get loan amount but this holds no more true as the person earning average can also apply for it by managing the customized available EMI options.
2. Hassle-free paper work
With dig-locker mission and the accounts linked with the Aadhaar card and PAN card the paper work requisite for loan has become very minimal subjective to the case.
3. Easy EMI options
With growing competitions in the economy, banks now a days providing easy EMI options as per the tenure of the loan to attract more customers which differ from bank to bank. Easy financing is one such bridge to fill cross the path.
4. No processing fee
No processing fee or any other is charged to the customer if he/she chose any plan.
5. Save funds, reinvest and grow
Even if one is capable of buying his own house he may prefer to opt to avail home loan facility and save on funds to reinvest further, which in return may attract lucrative interest, and save on taxes.
The term is self-explanatory. The formalities required for the procedure of home loan is kept clear, straight forward and transparent with no hidden charges to linger on.
7. Tax exemption
A home loan is, probably, the biggest tax-saving instrument, thanks to a number of tax deductions available under Sections 24, 80C and 80EEA of the Income Tax Act. Together, an eligible home loan borrower can claim a total tax deduction of up to Rs 5 lakh ( Rs 1.5 lakh on principal repayments under Section 80C plus Rs 2 lakh on loan interest component under Section 24 plus Rs 1.5 lakh on loan interest component under Section 80EEA if he meets the eligibility criteria) which can help him reduce his tax liability by Rs 1.5 lakh if he falls under the 30% income tax bracket.
8. Due diligence
A detailed check is undertaken to the extent of customer’s satisfaction.
9. Capital Appreciation
Property prices has boom over the last few years, the prospect of mouth-watering capital appreciation is the biggest argument for buying a home. Construction costs have risen at 15% annually in the past decade. Rents too seem to keep up with inflation; making a home one of the few investments can shield you from inflation for the long term.
10. Liquidity benefits
God forbid in case anyone face a liquidity crunch and are forced to take a financing facility like a personal loan or a collateralize loan, it may cost him much more in interest compared to home loan interest amount. So, why use your own funds and live in a liquidity crunch to buy a home? Your funds will protect you against life’s uncertainties and help meet other important financial goals.