Purchasing a home you can call your own is a dream come true for many. It is also a huge milestone in people's lives. As a homeowner, you can put your heart and soul into your house and create a space that suits your requirements and taste. However, buying a house can be pretty expensive. This is when supplementing your budget with a Home Loan helps.
Overview of Home Loans
A Home Loan is a Loan offered by various banks and financial institutions in India. Such a Loan boosts your budget and lets you purchase your dream home with the borrowed amount. To be able to avail yourself of the Loan amount, you need to meet certain eligibility criteria laid down by your preferred bank.
You may also need to submit particular documents required for a Home Loan, as specified by your bank. These may include the completed application form, PAN card, identity and address proofs, and any other documents the bank mentions. The Loan is offered for a specific tenure. You also need to return the Loan amount along with the interest over the Loan term. This is usually done as equated monthly instalments.
Today, you can not only apply for a Home Loan to purchase a house but also for the construction of a house. You can also take advantage of this Loan when doing repairs or renovations.
Benefits of Home Loans
The essential benefits of applying for a Home Loan include the following:
- Can own a home
The most crucial benefit of applying for a Home Loan is that it lets you buy a house for yourself. With the assistance of the borrowed funds from this Loan, you can purchase a property you love and pay it off using EMIs over a period. Hence, a Home Loan makes your dreams of owning a home a reality.
- Affordable EMIs
When you take advantage of a Home Loan in India, you can enjoy the benefit of flexible Loan repayment options. This lets you pick a repayment schedule that suits your financial situation. This means you can structure your EMIs to be as affordable as you want so that they fit comfortably within your budget.
- Enjoy tax benefits
A Home Loan lets you claim tax deductions on the principal amount and interest rates. Under the Indian Tax Act of 1961, you can claim a maximum of Rs. 1.5 lakh on repayment of the principal. This benefit is available u/s 80C. You could also claim up to Rs. 2 lakh on repayments of interest. This benefit is available u/s 24B. Besides these, Home Loans offer other tax benefits too.
Conclusion
Now that you know what a Home Loan is, you can consider the offers from various banks and choose the best.
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