Home loans are an essential part of every individual’s purchase decision. Home loans can be taken from any of the lenders by a borrower. The loan installments need to be paid on time by the borrower to avoid the penalty being charged. Home loans help in the early buying of a house for an individual thus helping people fulfill their dreams. The loans are disbursed based on the credit score of an individual. The borrower should also maintain a proper and sufficient bank balance in the bank account as it proves that the borrower is a financially stable person. Thus banks prefer that the loans should be extended only to the financially stable borrowers and also to the ones who have a proper CIBIL score. The loans thus if repaid on time can help the borrower improve the CIBIL score. The home loans have helped many of the borrowers buy houses across India and thus also provide a big boost to the housing industry. The housing industry or the real estate industry is growing very rapidly post the COVID times as there is a surge in the income of the people and the disbursement of the loans is also increasing.
The home loans disbursement is directly related to the sale of the properties. Thus the higher the prices and also higher the sale of the flats higher is the disbursement of the loans in numbers and amounts. The loans taken can be repaid over 30 years by the borrower; however, the actual tenure depends upon the age of an individual. The higher the age lower is the approval of the tenure of the borrower while as lower the age higher is the tenure being approved of the borrower. The banks charge processing fees while approving loans and also charge penalties for the late payment. Early payment of the loans may attract penalties by some lenders while sometimes the lenders may also approve rebates on the early repayment of the loans. After the repayment of the loans, the borrower should take the certificate of the completion of the loans along with the update in the CIBIL score.
Following are the benefits of the home loans:
- Can buy homes at an early stage of life:
Home loans help the borrower buy a house at an early stage by opting for the house at an early age. The loans help boost the real estate industry.
- Helps in making purchase decisions easy for the buyers:
Purchase decisions can be taken easily and quickly by the buyers and thus making planning easy for the home buyers.
- Helps plan for a higher budget for the housing:
The house purchase decision can help an individual plan for a higher amount of property purchase with the help of home loans. Thus home loans are beneficial for the purchase of high-value homes.
- Helps in tax savings for an individual:
An individual can save tax on the home loans under section 80C or section 24. Thus the borrower can save tax up to Rs.2.00 lakh for the interest payment and up to Rs1.5 lakh on the principal amount.
- Helps increase the sale of flats:
Real estate sales provide a big boost to the economy as the expenditure incurred is very high for property purchases. Thus home loans help many people satisfy their dreams of purchasing a house by an individual. Home loans thus can help boost real estate sales and have helped fulfill people’s dream of buying a house.
- Helps in increasing the collection of the taxes for the government:
For most people buying a dream home cannot be fulfilled without home loans. Thus with the help of the home loans purchase housing sales increase and thus helps the government increase the revenue collection with the higher sale of the property.
- Helps the borrower save money in case of the rising inflation:
As the property prices go on increasing continuously the borrower can save money on the surge pricing of the flats. Thus the early purchase of the property with the help of home loans can help an individual save money in lacks of rupees from the surge pricing.
The early purchase of the property can help an individual save money on surge pricing and this can be possible with the help of home loans. Home loans enable one to plan to buy a house even while not having sufficient money and the installments can be repaid on time. Thus opting for home loans is a better option while purchasing the home.