What are the Key Benefits of Taking a Home Loan?

Purchasing or constructing a home requires substantial capital and individuals may face financial crunch. As such, they can opt for a home loan to resolve their crisis.

Furthermore, financial institutions have made this process smooth and less time consuming by integrating home loan apps.

Benefits of home loan

1.      Income tax benefits: Borrowers can avail tax exemptions on their home loan under the following sections -

- Under Section 80C, they can avail deductions of up to Rs.1.5 lakh on the principal repaid.

- Under Section 24(b), they can avail exemptions of up to Rs.2 lakh on annual interest repayment. 

- Under Section 80 EEA, first-time home loan borrowers will be eligible for an additional deduction of Rs.2 lakh on the interest paid, over and above Section 24(b).

2.      Improves the credit score: When a borrower opts for a home loan via online loan apps to purchase or buy a house, he/she undertakes a long-term financial responsibility. Therefore, regular EMI payments will help individuals to improve his/her credit score in due course.

3.      Competitive interest rate: Compared to other forms of easy loans, home loan offers a more competitive rate of interest. It is mainly due to the fact that it is a secured loan, and it has a longer repayment tenor.

4.      Prolonged tenors: Home loans have a long repayment tenor of up to 20 years. This helps borrowers to plan their repayment accordingly to their convenience and make the entire process easy for them. 

Investing in the real estate sector can prove quite lucrative in the long run, more so as the government is planning to revamp the same. Borrowers can take help of instant loan apps like the Bajaj Finserv App to apply for home loans at attractive interest rates.  

Must Read:- What are the Key Benefits of Taking a Home Loan?