A house is the most coveted possession for everyone. As a result of this, buying a house is on the wish list of every individual. With the help of home loans, several people across the country have realized their dream of purchasing a house. So, if you are looking forward to buying a house, availing a home loan with low interest rate can be a great financing option. Instead of liquidating your years of savings and straining your budget planned for investments, taking up a home loan is a far better option.
Due to the advancements in the financial sector, customers can browse through a variety of home loan offers and settle for the one that suits them the best. With prominent financial institutions, it is possible for the borrowers to customize their home loan according to their requirements. However, before you apply for a home loan, you should make sure that you have a high credit score. Financial institutions judge your repayment capacity through your credit score. Therefore, the higher the credit score, the higher will be your loan amount. A good credit score will also help you fetch home loans at the most competitive interest rates. Since home loans are long-term loans, a low interest rate can help you save a lot of money in the long run. Apart from low interest rates, there are several other features associated with a home loan. Some of them are mentioned below:
Easy application and minimal documentation:
As a result of digitization, you can apply for a home loan through an easy online application process. Minimal documentation is an added advantage. On receiving your application, the lender examines all your documents. If the documents are found to be satisfactory, your home loan is sanctioned.
You can choose the home loan repayment tenure according to your convenience. You can also calculate your EMIs with the help of an online EMI calculator provided by the financial institution.
Tax benefits on housing loans
You can enjoy various tax benefits of your home loan. Under the section 80C of the Income Tax Act, you can avail tax deductions of the principal component of your home loan. Whereas section 24 of the Income Tax Act gives you the provision of availing tax benefits on the interest payable.
When you take up a home loan, it is equally important that you purchase a Home loan insurance policy. A home loan insurance offers protection against the risk of default in repayment in case of death of the primary applicant. By availing a home loan insurance policy, you can make sure that your dependents don’t have to bear the obligation of repaying the home loan in your absence.
Before you settle for a home loan, it is recommended to compare various deals offered to you by the different financial institution. This will help you find the best home loan for yourself. Lastly, do not forget to read the terms and conditions of the loan agreement before signing it.
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