Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > Loan for Home > Whether Taking Home Loan Is A Wise Decision Or Not?

Loan for Home

Whether Taking Home Loan Is A Wise Decision Or Not?

Whether Taking Home Loan Is A Wise Decision Or Not?

Are you planning to finally buy the home of your dreams? Most homeowners opt for home loans to finance their purchase. But, is it a good idea to take a home loan? Should you buy a house when you have enough savings or rely solely on financing? Don’t worry, we’re here to help. Find out what makes home loans so popular amongst homeowners.

Should I take a home loan – the pros

  • Tax benefits

Under Section 24, 80 EE and 80 C of the Income Tax Act, you can enjoy tax benefits as part of your loan. You can claim the interest amount you pay towards your home loan for deduction, up to a maximum of Rs. 2 lakhs in a financial year. You can also claim the principal portion of your EMI as deduction, up to Rs. 1.5 lakh.

  • Scope to improve credit score

Your credit score improves when you pay your loan EMIs on time. Thus, when you avail a loan, you have a chance to improve your creditworthiness. This will also help you take loans in the future with ease.

  • More liquidity

Is a home loan good idea or should you make a huge down payment with your own savings? While you do have to make a certain down payment in the case of a loan, it isn’t wise to exhaust your savings on a house. When you take out a home loan, you preserve your financial liquidity by spreading out the financial load over a longer period of time.

Should I take a home loan – the cons

  • Increased cost

When you purchase a house using a loan, you not only pay the principal amount but also the interest component. As a result, the cost of your house goes up. However, since this cost is spread out over several years, it is easier to bear it as opposed to paying a lump sum at one go.

  • More paperwork

When you buy a house using a home loan, you need to submit certain documents. Some lenders ask for a lengthy list of documents and may even have a slow processing time. So, if you are not able to submit some documents on time, your purchase might be delayed. Thus, it is wise to opt for a lender with minimal documentation requirements and fast processing times.

In conclusion – is a home loan a good idea?

Yes, there is a reason that home loans are so popular with homeowners across age groups and backgrounds. They provide a convenient way to purchase the house of your dreams. Additionally, you also enjoy tax benefits on the EMIs you pay towards the loan.

At Tata Capital, we offer a wide range of home loans, starting at an interest rate of just 6.85%. We offer loan amounts starting from Rs. 5 lakhs up to Rs. 5 crores to help you build the home you’ve always wanted.

Visit our website to learn more about home loan eligibility and documents required for home loan & repayment conditions.

Apply For A Home Loan Now

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
More About Loans
home loan calculating home loan housing loan rate of interest calculate home loan eligibility documents needed for housing loan quick cash loan housing loan top up home loan transfer home loan with overdraft facility home loan balance transfer calculator home loan disbursement process loan for home extension rgrhcl
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools