What is a Home Loan?
Why Home Loan?
Benefits of availing a Home Loan
1. An accomplishment – Every individual dreams of owning a house in their name. A home loan allows you to accomplish this feat and realize your dreams. This is one of the biggest financial investments you make in your lifetime and can therefore be considered an accomplishment.
2. Capital appreciation – Land is an appreciating asset in most cases. Construction costs have also increased over the years. As rents get more expensive with inflation, investing in your own house can shield you from inflation
3. Tax benefits – The Government of India has played the biggest role in boosting the home loan sector. As per Section 24B of the Income Tax Act 1961, you get a deduction of 1.5 Lakhs towards repayment of interest towards loans availed for purchase/construction of house property. This amount goes up to 2 Lakhs in case you are a woman and the property is registered in your name. At the same time, Section 80CC read with Section 80CCE of the Income Tax Act 1961 allows for a tax deduction up to 1 Lakh on repayment of principal amount of the home loan. This is one of the greatest incentives for people to opt for a home loan, even if you are able to afford to buy your house with your savings.