Why Getting Home Loan Is Desirable?

There were times when people did not consider taking the loans

, for whatever purpose, to be good. They would instead wait for the time they had the required funds for having a home or any other asset. With the development of the housing sector by the private sector and the facility of easy home finance by banks and finance companies, it has become possible for a large number of people to own their homes by paying out of their regular monthly incomes. Today, most of the people who can even pay the whole sum of property in one go, opt for the financing facility. What makes this so attractive a proposition to avail?

At first, the monthly instalments that you pay for the home loans are deductible expenditure under the income tax. So, your tax burden reduces to that extent. However, it shall be understood that a home loan instalment is paid in two components: principal and interest, and both of these are treated differently for income tax purposes. The benefits on principal are available under section 80C and up to a maximum limit of Rs 1 lakh, provided that you are living in that home. However, if you are working in a different city then this condition does not apply. It shall be noted that the principal amount of only one self-occupied property is deductible, not of more than more. So, if you have home loans for two homes, the principle of only one is deductible under section 80C.

The interest part is deductible under section 24, up to a maximum sum of Rs 1.5 lakhs for one borrower and there is no condition of living in the home. If there is more than one borrower of a home loan, say there are 2 co-owners, the maximum sum would be Rs 3 lakhs.

Second, you do not have to wait for a lifetime to own a property. There is no dearth of the property projects which might be of interest to you and you only have to be eligible for getting the loan for owning the property in matter of days or, at most, a few months.

Third, the facility of home finance makes it possible for a large segment of population to have home for themselves which is not possible otherwise. Since the instalments have to be paid monthly, there is not much of financial burden since the person can select a property whose instalment can be paid off easily.

Fourth, even if you can pay the full sum, it is still better to pay in instalments since all your money is not put on stake at once. In the meantime, you can safely invest that sum somewhere else which can give you monthly interest equivalent to the monthly instalment which you have to pay towards your home loan.

Since there are many benefits of availing financing option, people from all income brackets prefer to get these.

by: kamal bhatt

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