Today, most people buy houses by taking home loans because through this they have a lump sum amount to buy a house. But many times, big moneylenders, who have enough money to buy a house,, they buy property by taking a home loan. Have you ever wondered what could be the reason for this? The reason for this is the many benefits available on home loans, about which people are not aware. Let us tell you about these benefits-

The first benefit is available in income tax. If you buy a house with the help of a home loan, then you can save lakhs of rupees going in tax every year. According to the current rule, under section 24 (b) of the Income Tax Act, a rebate of Rs 2 lakh is available every financial year on interest payment. Under Section 80C, tax exemption of up to Rs 1.5 lakh is available on principal amount repayment. If a home loan is taken with the help of a co-applicant, then both the applicants can avail separate tax benefits and can save a total tax of up to Rs 7 lakh.

Before approving a home loan, the bank checks the title and records of the property to ensure that there is no dispute on it. All the necessary documents are verified through legal verification, which ensures that the property is not in possession of anyone else. This is a great benefit to the home buyer and he is assured that the property he is buying is not disputed.

If the co-applicant for a home loan is a woman, then you get the loan at a slightly cheaper rate. Many banks offer loans at interest rates as low as .05% if there is a female co-applicant.

Home loans are cheaper than other loans. Experts believe that in future its interest rates can be reduced to make it even more attractive. In such a situation, instead of spending your savings to buy a house, it is better to take a home loan with better interest rates. Save the savings for your retirement fund and other future needs. Thinking this, people buy houses by taking home loans even if they have money.

You can avail a top-up loan on home loans. Top-up home loans are a type of personal loan that you get at low interest rates. You also get a good amount of time to repay the top-up home loan because its tenure depends on the tenure of your home loan. Apart from this, there are no hidden charges in it. If you have bought a semi-furnished or old apartment, then you can easily take a top-up loan on your home loan for its interior or renovation.