Lesser Known Benefits of Home Loans

2. Tax benefits on the second house

In case you want to buy a second house, you are eligible to claim deduction for the entire amount of housing loan interest paid under Section 24B of the Income Tax Act of India.

3. Zero part prepayment charges up to a certain limit

Most home loan lenders allow part prepayment up to a certain limit without levying any penalties for it. This limit may vary from lender-to-lender. In some, cases you may even be able to part prepay regularly. This reduces your principal amount, and in turn your interest paid.

4. Long repayment tenure

Home loans usually have the longest repayment tenors, which may extend up to 30 years. This allows individuals to have lower EMIs, making it easier for them to budget their monthly expenses. However, long tenors also mean a higher interest pay-out.

5. Benefit for joint owners

If you take a loan with your partner and share a 50-50 ratio of the loan payment, both of you can claim deductions under Section 24 and Section 80C separately. You would be able to deduct a combined total of Rs.4 lakh under Section 24B and Rs.3 lakh under Section 80C. This can reduce your overall expenses significantly.

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