look news india
Benefits of Home Loan: Home loan is very helpful for those who do not have enough money to buy a house because through this a lump sum amount is arranged and the borrower gradually returns the loan amount in installments. But many people have enough money, but still they take a loan from the bank to buy a house. This is because home loan has many benefits. Know about such benefits here-
First benefit
The first benefit of taking a home loan is that you get confirmation that there is no dispute on the property you are buying. This is because before approving the loan, the lender checks the title and records of the property to ensure that there are no disputes. All the required documents are verified through legal verification, which ensures that the property is not occupied by anyone else.
Second advantage
The second biggest benefit of taking a home loan is income tax. If you are buying a house with the help of a home loan, then you can save lakhs of rupees in tax every year. According to the current rules, Rs 2 lakh exemption is available every financial year on interest payment under Section 24 (B) of the Income Tax Act. Up to Rs 1.5 lakh tax exemption is available on repayment of principal under Section 80C. If a home loan is taken with the help of a co-applicant, then both the applicants can avail different tax benefits and can save a total tax of up to Rs 7 lakh.
Third benefit
Home loan is cheaper than other types of loans. Experts believe that it can be made even more attractive by reducing its interest rates in the future. In such a situation, instead of spending your savings to buy a house, it is better to take a home loan with better interest rates. Save the savings for your retirement fund and other future needs. With this thinking, people buy a house by taking a home loan even if they have money.
Fourth benefit
Home loan can be topped up. If you have bought a semi-furnished or old apartment, then a lot of money is spent on its interior. In such a situation, instead of spending your savings or getting the work done by taking a personal loan, it is better to get the work done by topping up the home loan. Top-up on home loan is cheaper than personal loan, apart from this there are no hidden charges and you get a good amount of time to repay it.