As an Indian, having your own home is a dream that you’ve probably had for years now. Buying a home is a major financial decision and takes years of work and upskilling. But despite any capital you might have, home loans should be the only way you should purchase property. Here’s why:
1. Tax Deductions Under Section 24B:
One of the standout benefits of availing a home loan in India is the opportunity to claim deductions on the interest component under Section 24B of the Income Tax Act. For a self-occupied property, individuals can enjoy a maximum deduction of up to Rs 2 Lakhs per annum. This not only eases the financial burden but also serves as an attractive incentive for homebuyers.
2. Deductions on Principal Amount Under Section 80C:
Homebuyers can further optimize their tax planning by claiming deductions on the principal amount under Section 80C. A maximum limit of Rs 1.5 lakhs per annum includes investments and expenses such as PPFs and life insurance premiums. This dual benefit of interest and principal deductions makes home loans a strategic financial move.
3. Joint Home Loans for Couples:
Married couples can opt for a Joint Home Loan, allowing both partners to claim up to Rs 2 lakhs each on the interest paid and Rs 1.5 lakhs each on the principal repayment. This collaborative approach enhances affordability and encourages joint financial planning.
4. Free Legal Due Diligence:
The best advantage of taking a home loan is the free legal due diligence provided by banks and NBFCs. These institutions have strict legal processes to evaluate properties for which they disburse loans, offering borrowers a safeguard against potential scams. This added layer of security ensures a smooth and secure homebuying process.
5. Lower Interest Rates:
Home loans in India come with some of the lowest interest rates, making it a cost-effective financing option. The favorable interest rates significantly reduce the overall financial burden on the borrower, making homeownership more accessible.
6. Leverage for Affordability:
Perhaps one of the most compelling benefits of home loans is the leverage they provide. With the ability to own a property worth crores by paying just 20% of its price initially, home loans drastically improve affordability. This financial flexibility enables individuals and families to step into the real estate market with ease.
Home loans in India are not merely financial instruments; they are gateways to realizing homeownership dreams with added financial perks.
If you’re looking for the best home loan deals, CreditDharma is here to assist you on your homeownership journey. Check out our Home Loan EMI calculators and budgeting calculators to understand your path better! Your dream home might be closer than you think!