Buying a home is no less than awarding yourself for lifetime achievement, but also not a simpler task. Including comparing a lot of home options and offers, it requires a huge capital investment. No need to mention how property prices rise, it is a hard task to buy a home on savings entirely. Nowadays almost everyone avails a home loan.

From a general point of view, considering the huge amount and long tenure, home loan is a one among the biggest liability. However it has its own benefits and advantages that have made it an essential thing to be in the bucket list. Let’s discuss how home benefits home seekers loan. I hope, it will help a lot in making the right decision to the home seekers.

1. Low-interest rate:

If you take a home loan, it’s a long term decision as your installments will end up in years from 10 to 20 years. In its entire tenure, interest rates will follow both increasing and decreasing trends which means you will be benefited every time the rates go down. It may happen that the interest rates fall marginally, that also will reflect in your account.

Take the instance of the present scenario; RBI has announced the cutoff 0.75 points on repo rates collectively till June itself. Recently, it has announced more cutoffs and also asked the banks to reflect the same in home loans. Moreover, due to presence of various market players, you can avail competitive advantages.

Think of the people who have taken a home loan in the last decade of twentieth century when rates were around 18%. In their repayment tenure itself, rates have gone down to 12–14% with a bottom line of 7.5%. Also the property value had increased steeply which has doubled their wealth and benefited a lot.

2. Tax Benefit, Interest and Principal Paid:

As per section 24 of the Income Tax Act, 1961 after the current announcement in last budget, a deduction of up to Rs 2 lakh toward the total payable interest on the home loan towards purchase/construction of house property can be claimed. Also deduction of up to Rs 1.5 lakh on principal amount (including registration fee and stamp duty). For the first time buyer, additional deduction of Rs 50,000 can be claimed.

Every year in the budget, the government normally announce benefits for homebuyers and home loans.

For more information, visit our blog on current provisions of home loan.

3. Capital Appreciation: 

I hope, every one of us is well aware of the rise in property prices over the last decade. Buying a home is the best way to achieve maximum capital achievement, nothing can benefit more than that. If you’re living in a rented house, your rent will keep on increase with increase in property prices. In that way, you are paying for a just a shelter that end up with no asset creation while if you pay your installments, you don’t only attain tax deduction, but also creating an asset while self utilizing the asset. This argument is more than enough to justify securing a home loan for buying a home anywhere in India.

4. Government Subsidies and Rebates: 

Periodically, the government announces subsidies and rebates for home loans to benefit the citizens. Whatever may be the reason, politically or for strengthen the economy or lifestyle for the citizens, you will be the beneficiary. Browse various state and central government schemes for getting more benefits.

If you are in Patna and looking for buying a home by taking loans from financial institutions or banks, consider Saakaar Aquacity — the most luxurious, affordable and modern residential township of Bihar. It is duly approved by RERA which makes it eligible for getting loans from banks. It will be our pleasure in assisting you throughout the entire procedure of securing loans in much easier ways. For more information on Saakaar Aquacity Project, please visit our site and contact us.

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If you are in Patna and looking for buying a home by taking loans from financial institutions or banks, consider Saakaar Aquacity


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