Know the Key Benefits of Home Loan in India

Today everybody dreams about their own house, if you wish to purchase a home of your own the first thing you worry about is escalating property rates and that holds you back from purchasing the property. No doubt it is quite an expensive affair, and for this, you need to be confident of your finances before you take steps to buy your own house. However, in this case, home loans will help you out with managing all your finances required to get a home loan. Know the availability and benefits of home loans in India.

Let us assess the many benefits of taking a Home Loan in this blog.

Home Loan Features

Various home loan benefits also referred to as mortgages, have the following important characteristics:

1. Loan Amount

Normally, the loan amount of a home loan is determined by the value of the property and your capability to repay the debt.

2. Repayment Alternatives

Home loans with fixed and variable rates are among the many repayment alternatives available with home loans in India. The interest rate on home loans with flexibility in rates is subject to change over time.

3. Loan Tenure

Home loans often have long repayment terms, depending on the lender, it might vary from 10 to 30 years. Longer tenure terms have cheaper monthly payments, which may result in higher interest rates on your home loan.

4. Down Payment

Borrowers usually are required to contribute a portion of the property's purchase price as a down payment when receiving a house loan.

5. Interest Rates

An individual's interest rate may differ depending on various factors, including market conditions, monthly income stability, and of course your credit score.

6. Prepayment Options

Prepayments or early loan repayments are permitted on certain house loans, and no penalties are associated.

7. Tax Perks

Many of the home loans come with tax perks that might decrease your tax burden. You can remove principal and interest payments in many different nations.

8. Refinancing Options

You can save your money by switching out your current loan for a new one with better conditions.

Eligibility and Qualification of Home Loan

When considering a home loan, one of the first questions you need to ask yourself is am I eligible? To answer this question, lets see the eligibility criteria and qualification of home loan:

Benefits of Home Loan

Financing for buying a new house can be a little challenging but thankfully there are plenty of benefits of home loans in India. Here are below mentioned some of the benefits of home loan:

1. Improves Credit Score

One of the best benefits of Home loans is that it can also help you to improve your credit history which, in turn, increases your chances of getting loans in the future. When you apply for a home loan or any other loan and you continue to make payments of your EMIs on time, it will automatically improve your credit score as well. You will get instant approval of your loan if you are planning to buy a house, car or apply for student loans in the future.

2. Tax Benefits

Individuals who have taken a home loan for purchasing a residential property, under Section 24 of the Income Tax Act can claim tax deductions up to Rs. 2 lakh on the interest paid on the loan. Apart from this, principal repayments are eligible for deductions under section 80C of said act.

3. Low Interest Rates

The interest rates are lower than any other loan as compared to the secured loans, as this loan is secured against an asset. Home loan is the best option to cover your expenses for your house.

4. Equity Building

Your house value increases day-by-day when you take out a home loan. Ownership interest in the property increases as you make the monthly mortgage payment.

5. Stability and Security

Owning your own house gives you a sense of permanence and removes the uncertainty of paying the rent every month. But when you own a home, you along with your family will experience stability and security.

Other Advantages of Home Loan:

• Your home loan can be approved even if you haven't chosen the property.
• It's a win-win situation for NRIs as the funding is available for both NRI and non-NRI applicants.
• You can now easily avail the home loan online through various online landing platforms.
• It is a quick process and your loan amount will be disbursed in no time.

Conclusion

Home loans have made it possible for individuals to own their house with full financial support. I hope the above-mentioned benefits will help you in getting your home loans without any confusion. My Mudra prioritizes every individual's dream, and getting the house of your dreams is one of them. Get connected with us today and apply for an affordable home loan online through our website and get a home loan online without any hassle.

So wait no more and get your home loan now!

Also read: Documents Required for Home Loan for Salaried Person