For the salaried class, home loans are like a trump card that makes them eligible for acquiring the piece of real – estate at a young age with financial leverage. It would have really been a tough time for them if the facility of a home loan was not available. Perhaps one could have only thought of possessing their dream home after retirement or many would have compromised with that desire by prioritizing their social financial obligations and not been left with enough cash to chase their dreams of owning a house.
Home loans have not only detangled our life from the financial burden but also it comes with certain benefits… Who doesn’t prefer an icing on the cake, huh…?
EMI options to ease your financial liabilities
The home loan shares your financial liabilities since whatever you pay for the monthly EMI, you will still be having your finances to place to maintain a decent lifestyle. Moreover, you get the luxury to flaunt to dream house to everyone, thus adding a self-actualization value to it.. Trust me… It’s priceless.
Tenure to decide on
The home loan provides you the option of picking tenure suitable for you. It’s important to pick up the tenure properly since your loan eligibility increases with the longer tenure or the EMI deducted lessens but in the long run, you end up paying more
Flexible options to choose from
Home loans come with different EMI options like fixed-rate or variable rates. Fixed-rate remained fixed throughout the repayment period of the loans whereas inflexible home loans the interest varies from time to time as per the socio-economic situations as well the Government regulations. If the economic situation is favorable then the interest rate goes down and vice – versa. By the way, if you have a co-applicant who is a senior citizen you get a rebate of .5% and a financially strong applicant will add to the eligibility amount of the home loan. If you have opted for a fixed rate of interest, then the foreclosure of the loan will attract you a percentage of penalties but if you have opted for flexible home – loan interest, then you can repay the entire outstanding money as per your convenience without any charges
Tax benefits
The home loans EMI attract full Tax Benefits. For instance, if you are paying an EMI of Rs. 35,000 per month, which means this amount will earn you tax benefit under section 80 C
Increase your credit ratings if you are repaying them soberly
If you are paying the home loans on a scheduled date then your personal credit ratings get improved. Even with time if you have a good loan repayment history you may add top–up on your existing home – loans. You are eligible for top-ups only after a certain period of time as well as repayment of a certain percentage of the principal amount
Another important aspect you should not overlook when you are taking your home loan and that is to ensure your home loan. It takes care of unwanted emergencies ensuring that the house stays with your family in case of any unforeseen and unexpected situations.
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