The Covid-19 pandemic has created havoc worldwide and has impacted every sector, including the real estate sector. People, especially millennials, are looking at different options of investing in a home of their own. Buying a house is once in a lifetime decision requiring careful planning and an adequate amount of funds. There is no doubt about the fact that property is an asset that will reap you several benefits for years to come. However, not everyone can purchase a house of their own. Therefore, in times like these, a home loan is a practical way to go.
A home loan is an amount of money that an individual borrows from the bank at a certain rate of interest. It is an ideal financial assistance that will help you in fulfilling your dream of owning a house. You can check your eligibility using a home loan calculator online and then proceed with your application.
Image Source- Shutterstock
Over the years, home loan has become a popular borrowing tool which offers an array of benefits to countless homebuyers.
We have curated a list of some reasons that will tell you why home loan is a good idea in covid times:
- Sense of Achievement
Purchasing a home of your own brings a sense of achievement that you cannot get in a rental place. A home loan is a great way to cover your finances and own your dream place. In uncertain times like these, a home loan helps you turn your dream into a reality by providing the required financial aid.
2. Cost-Effective Way of Availing Credit
One of the major benefits that a home loan offers is that it comes with a lower interest rate when compared to a personal loan or the gold loan. This is because the lender can use the property you wish to purchase as a security against the amount you borrow. Choose a lender that offers the loan at the best interest rate because a slight difference in interest rate could save you thousands of rupees.
3. Leads to Capital Growth
Property is a great investment that can reap significant returns over time. For instance, if you reside in rented accommodation, you will have to pay the rising property rates to keep up with inflation. But, if you take a home loan, you can take the advantage of the capital appreciation. A home loan offers a fixed rate of interest and can protect you from property inflation.
4. Tax Benefits
You can avail of tax benefits for both the interest paid on the home loan as well as the principal amount. You can take advantage of a deduction of Rs. 1.5 Lakhs under Section 24 (b) of the Income Tax Act on the total payable interest.
5. Guarantees Safety of the Property
Purchasing a house is once in a lifetime opportunity, and you should make sure that the property you invest in should be free of legal issues. This is where buying a home loan can come to your rescue. When you approach a lender, usually the lender will do a complete background check of the seller and the property. The lender will typically also ensure that the property is not involved in any legal disputes.
6. Helps in Savings
Purchasing a house can drain your entire life savings in just one go. It is one of the most important investments and decisions that you make. The biggest advantage of taking a home loan is that it keeps your savings intact and handy so that you can use it in an emergency like for covid. A home loan is a safe way to live in your own home.
Make a Wise Decision with Home Loan
The ongoing pandemic has brought the world to a standstill where everyone is trying to adjust to the new normal. The present time is indeed the best time for end-users to buy a home of their own. Thus, a home loan is the perfect option among many when it comes to buying a house. You can take help from reputable banks like Axis Bank during such hard times, as they offer home loans at lower interest rates. With a simple application procedure, they offer home loans starting from Rs 3,00,000.
Your dream home is just a few clicks away!