While planning to buy a home, we are always in a dilemma regarding buying our dream home with our funds or availing a home loan. Most of us consider loans as a liability and do not like to opt for one. But getting a home loan has many advantages. Some of them are:
Advantages of taking a home loan
Home loans are eligible for tax benefits under section 80C and 80EE of the Income Tax Act. The interest amount of up to Rs. 2,50,000 is eligible for 100% tax deduction while the principal amount gets exemption under 80CC.
Check the opportunity cost of buying your home with your funds. It is usually the profit or benefit which you are sacrificing by investing your funds in a home rather than in business-related activity. Availing a home loan gives you a chance to use your money in profitable business activity.
Instead of paying rent, pay the home loan EMI to make your own home. Living in your own home is better than a rental home, any day.
Many home loans come with insurance which would help your family repay the loan in case of your untimely death.
Availing home loan gives you a chance to improve your credit score by timely payment of loan EMI.
You can buy a property which you would otherwise not have considered with your limited funds.
Check your home loan eligibility and go for it. Taking a home loan is an excellent idea for every buyer.
