{"id":5346,"date":"2023-08-28T17:33:10","date_gmt":"2023-08-28T17:33:10","guid":{"rendered":"\/blog\/?p=5346"},"modified":"2025-01-16T14:27:06","modified_gmt":"2025-01-16T08:57:06","slug":"good-debt-bad-debt-what-is-home-loan","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/good-debt-bad-debt-what-is-home-loan\/","title":{"rendered":"Good Debt & Bad Debt – What is Home Loan?"},"content":{"rendered":"\n

This might sound odd but yes, loans can be good as well as bad.<\/p>\n\n\n\n

Though this is not a technical difference between loans, the fact is\nthat this differentiation is fairly useful, when it comes to managing personal\nfinances.<\/p>\n\n\n\n

Know More<\/a><\/div>\n\n\n\n

Experts are of the view that loans which are used to purchase assets\nthat increase in value (with time) is good debt. Whereas loan used to purchase\ndepreciating assets (like cars) or for discretionary expenses (holidays) are\nconsidered bad debt.<\/p>\n\n\n\n

Now what kind of debt is a home loan?<\/p>\n\n\n\n

This is a tricky question. No doubt real estate is considered to be a\nproductive asset as generally, its value increases with time. But it\u2019s\ndebatable whether one can even consider their self-occupied house as an asset\nor not. This is because one will sell their house even if it appreciates in\nvalue. Isn’t it?<\/p>\n\n\n\n

But if house is being considered to be an asset, you can easily consider a home loan<\/a> to be a good debt.<\/p>\n\n\n\n

If you are a real estate investor who buys property solely for capital\ngains, then home loan is a good debt for you. It is being used to purchase an\nasset that is expected to increase in value in near future.<\/p>\n\n\n\n

But let\u2019s try to understand what bad debt is? A bad debt is the loan that is used to spend money on depreciating assets like vehicles, mobiles, gadgets, etc. or for discretionary expenses like international holidays, partying, etc. <\/p>\n\n\n\n

As already mentioned, there is no practical utility of this concept of good or bad debt. And there is nothing to be gained from debating about good vs. bad debt. But in general, bad debts are costly forms of loans. So if you can avoid, then you should not take these loans in first place. But if you have taken these loans and have surplus money, then you should try to clear it off as soon as possible.<\/p>\n\n\n\n

Apply Housing Loan Online<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

This might sound odd but yes, loans can be good as well as bad. Though this is not a technical difference between loans.<\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":5347,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-5346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-home"],"yoast_head":"\nGood Debt & Bad Debt - What is Home Loan? - TATA Capital Blog<\/title>\n<meta name=\"description\" content=\"Understand the difference between good and bad debt, and know whether a home loan is considered good or bad debt based on your financial goals and investment plans.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Good Debt & Bad Debt - What is Home Loan? - TATA Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Understand the difference between good and bad debt, and know whether a home loan is considered good or bad debt based on your financial goals and investment plans.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/good-debt-bad-debt-what-is-home-loan\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T17:33:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-01-16T08:57:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2020\/01\/good-and-bad-debt.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"464\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/good-debt-bad-debt-what-is-home-loan\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/good-debt-bad-debt-what-is-home-loan\/\",\"name\":\"Good Debt & Bad Debt - What is Home Loan? 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