Top 10 Home Loan Benefits

Home loans have become a popular choice for many Indians who dream of owning their own home. These loans offer a way to purchase property without paying the entire amount upfront. Home loan benefits extend far beyond just helping you buy a house. They include tax advantages, wealth creation, and many other perks that make them an attractive financial tool. When looking at home loan benefits, it is important to understand how they can improve your financial situation. Home loans allow you to spread the cost of a large purchase over many years. This makes buying a home more affordable for the average person. With housing prices rising each year, home loan benefits become even more valuable.

This article will explore the top 10 home loan benefits that make them worth considering. We will also look at tax benefits, eligibility requirements, and how to apply for a Bajaj Finserv Home Loan. By the end, you will have a clear picture of why home loans are so popular in India.

Top 10 home loan benefits

Home loan benefits can make a big difference in your financial planning. Here are the top 10 home loan benefits to consider:

• Property ownership: The biggest home loan benefit is that you can own a home without paying the full amount at once. You can move into your dream home while paying for it over time.
• Long repayment period: Home loan benefits include tenures of up to 32 years with lenders like Bajaj Finserv. This means smaller monthly payments that fit your budget better.
• Wealth creation: Unlike rent which gives you no return, home loan benefits include building equity in a property that typically grows in value over time.
• Protection against inflation: As housing prices and rents rise with inflation, your EMI stays the same if you choose a fixed interest rate. This is one of the key home loan benefits.
• Low interest rates: Home loans have some of the lowest interest rates compared to other loans. Bajaj Finserv offers rates starting from just 8.25%* p.a.
• Tax benefits: Home loan benefits include significant tax deductions on both principal and interest payments.
• Better credit score: Timely payment of home loan EMIs helps improve your credit score, which is an indirect but important home loan benefit.
• No restriction on usage: With home loan benefits like top-up loans (up to Rs. 1 crore with Bajaj Finserv), you can get additional funds for other needs.
• No foreclosure charges: For floating rate loans, many lenders including Bajaj Finserv do not charge any foreclosure fees for individual borrowers.
• Balance transfer option: Home loan benefits include the ability to transfer your loan to another lender for better terms, such as lower interest rates.

Tax benefits on home loans

Understanding the tax benefits on home loans can help you save money each year. Home loan benefits related to taxes make these loans even more attractive. Here are the key tax benefits you should know about:

1. Section 80C deductions:

• You can claim up to Rs. 1.5 lakh deduction on the principal amount repaid during the financial year.
• This home loan benefit reduces your taxable income significantly.
• The deduction also covers registration fees and stamp duty charges.

2. Section 24B deductions:

• Interest paid on home loans qualifies for a deduction of up to Rs. 2 lakh per year for self-occupied property.
• For rented properties, there is no upper limit on the interest deduction.
• This is one of the most valuable home loan benefits for tax planning.

3. Section 80EE for first-time buyers:

• First-time home buyers can claim an additional deduction of up to Rs. 50,000 under certain conditions.
• This home loan benefit is over and above the Section 24B deduction.

4. Joint home loan benefits:

• Both co-applicants can claim tax deductions individually on their share of the loan.
• This effectively doubles the home loan benefits for tax deductions.

5. Pre-construction interest:

• Interest paid during the pre-construction period can be claimed as deduction in five equal instalments starting from the year of completion.
• This is an often-overlooked home loan benefit.

Home loan eligibility criteria

Before applying for a home loan, it is important to understand the eligibility criteria. Meeting these requirements will increase your chances of approval and help you access all the home loan benefits. Here are the typical eligibility criteria:

• Age: For salaried applicants, age should be between 23 and 67 years. Self-employed professionals should be between 23 and 70 years at loan maturity.
• Credit score: A CIBIL score of 725 or higher is ideal to qualify for the best home loan benefits and interest rates.
• Income: Your income should be sufficient to cover the EMI payments. Most lenders recommend that your EMI should not exceed 50% of your monthly income.
• Employment: You must be a salaried employee, a professional, or a self-employed individual with a stable income source.
• Nationality: You must be an Indian citizen residing in India to access home loan benefits from most lenders.

How to apply for Bajaj Finserv home loan

Applying for a Bajaj Finserv Home Loan is simple and straightforward. Follow these steps to access all the home loan benefits they offer:

1. Start application: Click on the 'APPLY' button on top of this page.
2. Fill basic details: Enter your full name, mobile number, and employment type to begin.
3. Select loan type: Choose the type of home loan you wish to apply for (fresh, balance transfer, or top-up).
4. Verify mobile number: Generate and submit the OTP to verify your phone number.
5. Provide additional information: Enter details like your monthly income, required loan amount, and property information.
6. Submit personal details: Enter your date of birth, PAN number, and other required information based on your occupation.
7. Complete application: Click on the 'SUBMIT' button to complete your application.
8. Speak with representative: A Bajaj Finserv representative will contact you to guide you through the next steps and help you access all the home loan benefits.

Government schemes and subsidies for home buyers

The Indian government offers various schemes to make home ownership more accessible. These schemes provide additional home loan benefits beyond what lenders offer.

These schemes aim to make housing more affordable by offering interest subsidies, tax benefits, and other financial incentives to eligible home buyers in India.

Conclusion

Home loan benefits make purchasing property more accessible and financially advantageous for many Indians. With features like low interest rates starting at 8.25%* p.a, tenures up to 32 years, and substantial tax benefits, home loans are an excellent financial tool for property buyers.

Bajaj Finserv Home Loans stand out with several unique benefits:

• Loan amounts up to Rs. 15 crore** based on eligibility
• Disbursal within 48 Hours*
• EMIs as low as Rs. 741/lakh*
• No foreclosure fees for individual borrowers with floating interest rates
• Top-up loan facility of up to Rs. 1 crore
• Access to 5,000+ approved projects for faster processing

Additionally, Bajaj Finserv offers three types of home loans to suit different needs:

• Fresh home loans with competitive interest rates
• Home loan balance transfer options to help you save money
• Home loan top-up options for additional financing needs

When evaluating home loan benefits, it is important to consider both the immediate advantages and long-term financial impact. A home loan not only helps you purchase a property but also serves as a wealth-building tool through property appreciation.

Ready to enjoy these home loan benefits? Apply for a Bajaj Finserv Home Loan today and take the first step toward owning your dream home. Their simple application process and customer-friendly policies make accessing home loan benefits easier than ever before.