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Why Home Loans are the Best Housing Finance Options Nowadays?

Author: Anil Sinhaanni
by Anil Sinhaanni
Posted: Oct 27, 2021

Home Loans in Hyderabad have become quite a trend in the last couple of decades, and it is not a surprise why that is the case. The rapid expansion in nearby regions, affordable housing options, expanding middle class, and low interest rates on home loans have been the reasons for the gradual increase in the home loan applicants year after year.

But why are home loans the best way for one to finance their house nowadays? It is evident by the number of home loan applicants that it is the preferred way for one to finance their new house, but why that is the case? Well, here are some benefits of home loans because of which they are the best housing finance option.

  1. Flexible repayment schedules

Obviously, the reason why people opt for a loan is that they can easily repay the loaned amount in small EMIs over a long tenure. Interest rates play a significant role in one choosing to opt for home loans, but nowadays, the home loan market has become so competitive that you can easily avail of a home loan from a reputed lender at a marginal interest rate.

  1. Tax benefits

Many readers might not know this, but availing of a home loan has some tax benefits. Yes, by taking a home loan, you automatically become eligible for a tax break which will help you save some serious cash year after year as long as the home loan is still in effect. Under section 80C of the 1961 Income Tax Act, principal repayments up to 1 Lakh are deductible every year. However, one should keep in mind that this rule applies to only residential property owners. There are other tax benefits as well if one takes a home loan.

  1. Option to choose the interest rate that serves you best

Home loans in Hyderabad allow one to choose their preferred type of interest rate – namely, between fixed interest rate and floating interest rate. A fixed interest rate, as the name suggests, remains fixed throughout the tenure of the loan, and it will stay the same at the end of the period as well. While floating interest rate, again, as the name suggests, changes month after month. The market conditions determine this fluctuation, and it is not in the control of either the borrower or the lending institution. One can easily choose the type of interest rate they prefer when applying for a home loan.

  1. Due diligence of the property

An added benefit of a home loan is that a lending institution does due diligence on the property in question before approving any loan application. So, if you are not sure about the property in question, then when you apply for a home loan from a reputed lending institution, they will verify the property documents, its title, legal clearance, etc., before clearing the loan application.

  1. Easy for anyone to get

Last but not least, the reason why home loans are the best housing finance options now and days are because of how easy they are for one to get. One can apply for a home loan from the comforts of their couch and without circling lending institutions to know which one is offering them the best deal. This can all be done from the comfort of one’s home.

Now, you have inspiring reasons why a home loan should be your go-to choice when looking for the ideal home financing option. Then, connect with financial advisors and let them help you with your loan application.

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Dream land Infra developers offering farm land for sale in Bangalore at best affordable prices.

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Author: Anil Sinhaanni

Anil Sinhaanni

Member since: Apr 08, 2021
Published articles: 85

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