Is Taking Housing Loan Useful In India?

 

Owning a house is a dream come true for many. But, with the skyrocketing property prices, it’s impossible to buy a house just by savings. This is where taking a housing loan comes into the picture. The government of India has taken several initiatives in recent years to make housing loans more accessible to people from all walks of life. But, is taking a loan for house really worth it? Let’s explore.

Is Taking Housing Loan Useful In India?


1. Tax Benefits:

One of the biggest advantages of taking a housing loan in India is that it comes with tax benefits. Under Section 80C, the repayment of the principal amount is deductible up to Rs. 1.5 lakh. Similarly, under Section 24(b), the repayment of the interest amount is deductible up to Rs. 2 lakh. This not only reduces your tax liability but also saves you a substantial amount of money.

 

2. Low-interest rates:

Housing loans come with low-interest rates, making it more affordable to purchase a house. The interest rates for housing loans in India can range anywhere between 7%-10.5%. However, the interest rate for housing loans is often influenced by factors such as your credit score, employment status, and personal savings.

 

3. Helps Build Creditworthiness:

Taking a housing loan can help you build your creditworthiness, which will benefit you in the long term. As long as you repay your housing loan on time, your credit score will improve, making you eligible for other loans with better terms and lower interest rates. Moreover, having a good credit score can give you an edge in the job market.

 

4. Affords You the Opportunity to Invest:

When you take a housing loan, you’re not just buying a house, but you’re also investing in an asset that could appreciate over time. As the value of the property increases, so do the returns on your investment. Additionally, if the property you purchase is rented out, you can earn a steady income that can help you repay the housing loan.

 Must Read This: What Are Tax Exemptions With Mortgage Loan?

5. Long-term Commitment:

Taking a housing loan is a long-term commitment and requires proper planning to ensure that you don’t default on the repayment. It’s important to factor in all the expenses, such as property tax, maintenance costs, and insurance premiums while evaluating your budget. You should also have a contingency plan in place to cover unforeseen expenses. Get more info, Instant loan without CIBIL.

 

Conclusion:

Taking a housing loan can be a smart move, provided it’s done responsibly. It not only helps you buy a house, but it also comes with several benefits such as tax benefits, low-interest rates, improved creditworthiness, and the opportunity to invest. However, before you take a housing loan, ensure that you evaluate your financial capacity and plan your repayment wisely. With careful planning and the guidance of an expert, taking a housing loan can help you achieve your dream of owning a house.

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#housingloan #homeloan #loanservices #cibil




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