While taking a home loan, you think that you will repay it easily, but later when you have to pay EMI every month, then this loan starts to seem like a hassle. Everyone wants to get rid of the hassle of an EMI as soon as possible. But a home loan is not a hassle, but a wonderful facility. If you look at its other aspects, you will see many benefits of taking a home loan. This is the reason why big businessmen who can buy property in a jiffy also take home loans. Here are the 5 big benefits of a home loan.

Customer-friendly loan

The first advantage of a home loan is that it is a customer-friendly loan. Home loans are cheaper than other loans. The repayment terms in this are easy and the customer gets the facility to prepay or foreclose the loan. Experts believe that in the 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. With this thought in mind, people buy a house by taking a home loan even if they have money.

Saving income tax
The second biggest benefit of home loans is in income tax. With the help of a home loan, you can save lakhs of rupees every year in tax. According to the current rules, under section 24 (b) of the Income Tax Act, a deduction of Rs 2 lakh is available every financial year on interest payment. Under section 80C, a tax exemption of up to Rs 1.5 lakh is available on principal amount repayment. On the other hand, if the home loan is taken with the help of a co-applicant, then both the applicants can avail of separate tax benefits and can save a total tax of up to Rs 7 lakh.

Assurance of property title

Before approving a home loan, banks check 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 does not have anyone else. This assures the home buyer that the property he is buying is not disputed.

Top-up loan facility

You can avail top-up loan on the home loan. A top-up home loan is 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, you can easily take a top-up loan on your home loan for its interior or renovation.

Benefits of having a female co-applicant

A joint loan facility is also available in home loans. 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 a .05 percent lower interest rate if there is a female co-applicant.

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