A House Loan Is The Ideal Finance Option Available

  • Added:
    Feb 12, 2014
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A House Loan Is The Ideal Finance Option Available Photo by Aishwarya Mahurkar

When it comes to home finance, the most common reaction is the feeling of fear and concern. It is no wonder then that quite a few people miss the benefits of home loans . Today’s housing market is thought to be rather volatile. However, this industry is still a great option for valuable long term investment. In fact, if you are looking to buy your own place, the real estate in small cities is a promising investment opportunity. As many newspaper articles now rightly state that two tier cities like Dehradun, Bhopal, and Hubli etc witness ample growth.

The best choice for housing plans lies across India. One can buy the right property with the help of the right finance tool - the home loan, which has several benefits. When you are paying the home loan EMIs, you can deduct these payments from your annual income for the income tax calculation in that financial year. Hence, the tax that you would pay will be much lower than usual.

The next advantage is that home loans can be customized  to suit your monthly income and spends. In other words, you can opt for accelerated repayment schemes, if you wish to finish off the loan as soon as possible. Thus, you can create the repayment plan according to your cash flow status. Hence, you might be able to make all your repayments without any major hassles or concerns. Your finances can certainly be strengthened with the right repayment strategy.

It’s difficult to understand this benefit until you go through the home loan eligibility criteria and the complete home loan process, which is customized to suit your financial needs. For example: As a doctor, you would need your home in your early twenties and you will start seeing major earnings in your late thirties. You can customize your loan to pay your EMIs accordingly. However, it might be tad difficult to pursue major nationalized banks to offer you the home loan in India because at times, even business owners, professionals and entrepreneurs fail to qualify their stringent criteria. However, private housing finance companies in India are more flexible and offer faster house loans to this community.  

Your home also helps you to enjoy capital appreciation over a period of time. Thirdly, most people are concerned with these regular repayments. They think that they can avoid these repayments by avoiding the housing loan. However, whether you pay your rent or you pay EMIs, similar amounts would go out of your bank account. It is, hence, much smarter to invest that money into your own property rather than offering it as rent to someone else. So, convert your rent payments into EMIs to earn the privilege of owning a property. Make the most of these housing loans in India.

Author's Profile

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the benefits of home loans and the home loans can be customized.

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