Home Loan is Really Acting as a Catalyst

Home loan is really acting as a catalyst

Home is like a dream come true for every individual. It is among the greatest financial hoards that one can make if a lifetime. Felicity about getting a home isn’t only because it being a living space to one’s emotions, but it’s also because it adds up a large amount to one’s investments portfolio. However, this may get a little tedious for individuals surviving on a fixed amount every month for a living, especially in India.

Home Loan comes as a spark light for those willing to save on their rental slips and income taxes. Several institutions including private and government offer loans for buying homes to people across the nation. These loans are associated with a number of advantages, and this why we call home loans as a catalyst. In this article, we shall go through various reasons what make home loans convenient and advantageous for most Indians.

Investing in the Right Direction

Invest your hard-earned money in a right manner. Paying rents for years and years would buy you nothing in return than merely a temporary space of living. We do understand that buying a property requires surplus capital investment, which may not be possible for many. Home loans can sooth your frustration in such cases. You will have to pay a down payment amount to book a house for yourself and mortgage the remaining money with a lending institution.

Once your loan is sanctioned, alike monthly rental EMIs, you would have to pay mortgage EMIs instead. Inflation alike everything else is influencing the home rents as well; thereby, it is rather wise to pay a mortgage than waning it in rents.

Benefits in Income Tax

The Government of India offers tax benefits for the total interest payable on your home loans. You can claim tax refundable amount or avail from paying by computing income tax from a home property, as per the IT Act, Section 24(b). Similarly, you can avail from paying income tax on up to Rs. 1 lakh from your annual gross total income for principal repayment benefits, as per IT Act, Section 80C and 80CCE.

The low-interest rates and tax benefits act as contributing element and enhancing towards a smooth flow of your monthly EMIs.

Capital Investment and Property Appreciation

Property prices are booming extensively since the last decade. The prospects of investing in homes and other properties can deliver mouth-watering wealth appreciation.Buying a home can prove one of the biggest financial achievements that you’ve had in your lifespan.

For most people in India, home loans are an ideal solution to buying their space of permanent living. Only a few privileged populaces enjoy buying property in India without home loans. Making a home for yourself using home loans facility on one hand and property appreciation gaining pace on the other can save a lot of money from inflation for an elongated period of time.

Home loans work on making your way towards home property ownership affordable. However, with all the goods, there are drawbacks that follow. By taking home loans, you end up paying much more than the actual property amount.


Home loan is not something that you avail and keep paying to the same bank with the same rate for years. Since the interest rates are very volatile, you have to keep a close watch on this which will save a good amount of money. Recently according to RBI guidelines, there won’t be any pre-closure charges on the loan. One can switch his loan to any other financial institution with great ease now. So having mortgage advisor doing this all for you for entire loan cycle is MUST. Hire yours now.


Lot many people think that selling the existing home & taking a new home loan which is only proportionate to your income is the solution to upgrade to Bigger & Better home. It holds true only up to an extent. There is a facility called Loan Against Property wherein your older properties current market value can get you a bigger amount of loan for a new property that you want to purchase.

With this, you don’t need to sell the existing investment, where as you make new one too!