In most metro cities across India, the price of real estate has been on the rise for quite a while. Despite the rising prices, people continue to look for their new homes, hoping to find their ideal house before the real estate prices surge even further. However, those in the market for a new home are finding it difficult to find something that meets both their aspirations and their budget. Thankfully, it is possible to opt for a home loan to helps realise the dream of owning your very own home.

While many people might try to tell you that a mortgage is a bit of a gamble, let’s take a look at some of the benefits that you can enjoy when you choose to purchase a home with the help of a loan:

1. Lucrative Investment – Over the last few years, we have seen the real estate market boom. Despite what people may be saying, it looks like these prices will continue to rise for some time to come. If you take a loan today to make a down payment on a home, you can rest assured that the house will have a much greater value in the near future. Once you’re done paying off your mortgage, you may even be able to sell your property for double the cost that you paid.

2. Good Credit Score – Irrespective of whether you intend to take a loan again in the future or not, you should always try to build a good credit score. Your credit score is one of the first things that financial institutions check before deciding whether or not you are eligible for the loan you have applied for. When you take out home loans in India and make consistent payments towards your EMI, it goes towards improving your CIBIL score or credit rating.

3. Collateral on Loans – When you own property, you automatically have better credit eligibility. You can choose to provide your property as collateral for a secured loan, which offers higher loan amounts and lower interest rates than unsecured loans.

4. Quality Assurance – Before agreeing to sanction your loan, the bank will look into the property you are investing in. They will check the builder’s background and ensure all the paperwork is in order before disbursing your loan. If the financial institution approves your application, you know that the property papers are in order and you don’t have to worry about any future litigation before you get your property.

5. Enjoy Tax Benefits – The benefits you can enjoy are two-fold. Firstly, you can get deductions on the repayment of the principal amount that you borrowed under Section 80C of the Income Tax Act. Secondly, under Section 24(b) you can also get an interest deduction on the amount that you have borrowed. This benefit is capped at Rs. 2 lakhs.

Of course, the most important advantage of purchasing your own home is being able to make the space your own and enjoying the liberty of personalising it. You can make any modifications as you please and ensure that everything perfectly suits your tastes and requirements. Thankfully, there are a number of banks and financial institutions that are helping us realise this dream of owning a home by offering competitive rates on home loans. In fact, the entire process to apply for a home loan has become incredibly easy, with many institutions offering speedy online eligibility tests as well. So, what are you waiting for? Apply for a loan today, so that you can enjoy a financially-secure tomorrow.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.