Benefits of Home Loan
Residential debt is a secured loan, which is more beneficial in comparison to losses. There are many benefits to availing housing loans, which are as follows:
• Advantages of Inflation
If you fulfill your dream of living with a home loan, its biggest benefit will be to avoid long-term inflation, because in the recent years, the prices of property have risen higher, in which the construction cost of the flat has also increased. If you invest for home then you can take advantage of avoiding such rising prices.
• Profit of low interest rate
The repayment of the housing loan is long-term, in which the rate of interest increases and decreases, due to which the rate of interest will be low, then you will get benefit. The interest rate of housing loan is lesser than any other type of loan. Getting it is also very easy.
• Deduction at interest rate
If you are already paying EMI for a residential loan then you can claim for interest deduction. Along with this you can avoid giving income tax also. According to Section 80 C of Section 24 of the Income Tax Act, you can claim interest deduction on your housing loan. This allows you to get tax rebates up to Rs. 2,00,000.
For the first time, under section 80 EE, which is the home loan borrower, they may be allowed to deduct interest only if the loan taken by them is upto 35 lakh and the value of the property purchased is less than 50 lakhs. The benefit of this deduction will continue till the repayment of the loan.
Benefits of Home Loan
Taking a loan from the bank is beneficial and there is also some harm that the borrower should know, which we have referred below:
You have to take a guarantor to take home loan as well as if you can not pay a defaulter for more than 3 months so the bank can make auction of property to withdraw its money.
The rate of interest fluctuates mainly in housing loans because it is uncertain.
If you sell your property within 5 years, the deduction under section 80C will not be received and it will be added to your income.
Important things regarding home loan
Before taking a home loan, visit to all the banks, understand its terms and process of home loan.
All banks have different interest rates, take all the information related to them from the bank, and see where the interest rate is low.
Give the bank proper information of self and property and also be aware of the new conditions of the bank from time to time.