One advantage of a home loan is that you can claim tax benefits under section 80C, 80EE and section 24.
Cheapest Home Loan: Buying your own house is everyone’s dream. To fulfill this dream, some people add money throughout their life, while many people fulfill this dream by taking loans. Home loan is one of the best financial products that helps you buy a dream home with tax benefits. Before applying for a home loan, you need to pay a certain amount out of your pocket, also known as a down payment. This can be between 10% to 20% of the total property cost. After paying the down payment, you can get the balance amount in the form of a home loan and this amount has to be repaid over a stipulated period as per the loan agreement.
Applying for a home loan is very easy, but whether you will get the funds or not depends on your eligibility, credit score and income. Lenders assess your repayment capacity through your credit history to avoid future payment defaults. Home loan is a secured loan, where the loan is taken against a guarantee. If you fail to pay the principal amount and interest, the lender can confiscate your property.
Upcoming Cars in June 2022: Kia EV6 to Maruti Suzuki Brezza to be launched in June, know what’s special about them
get tax benefit
You can apply for a home loan by submitting your documents at the branch or through the respective online portal of the financial institution. If you meet the credit score, income and other eligibility criteria, you will get the loan within a few days or weeks. Depending on your home loan, you can claim tax benefits under section 80C, 80EE and section 24.
How much loan should be taken?
You should know the interest rate, tenor and other terms and conditions before applying for a home loan. You should calculate how much EMI you can pay along with your other liabilities and needs. A simple rule is that your EMI should not exceed 40% of your take-home salary. If you are short of funds to buy a home, you can take a joint home loan to increase the amount. However, always assess how much you can pay as EMI without any financial burden.
Ethos IPO: Will investors gain or lose listing gains? What is the opinion of experts among weak GMP
Home Loan Interest Rates & EMIs
Here we have given a list of more than 30 such banks and financial institutions, which are offering home loans at affordable interest rates. You can compare interest rates here and also check the possible EMI for a loan of Rs 75 lakh for 20 years.
(Sanjeev Sinha)
(Disclaimer: These figures have been collected from online marketplace bankbazaar.com. All these data have been taken from the website of respective banks as on 26 May 2022.)
www.financialexpress.com