You get tax benefits = 80 C upto 1.5 lacs intt upto 2 lacs.
A house door with your name on it is the ultimate dream of any living being. In India, owning your own house is considered as one of the major signs of success. As the average income ratio of Indians is increasing with of globalization and government pay commissions, the desire to buy own house increasing simultaneously. Along with them the price of property is increasing day by day, irrespective of urban and rural areas. Thus it becomes highly impossible for a common man to buy a house only with his or her savings. This has lead to an increase and extreme popularity in purchasing home loans from banks and NBFCs to live in a dream. Home loans are the highest selling banking product. It also assures a stronger and longer relationship with your bank. A home loan which is also known as housing loan refers to an amount borrowed by consumer/s from a bank or NBFC to buy, construct, repair or renovate a residential property. This borrowed amount or loan is lent on a fixed or flexible tenure and an interest rate on the borrowed amount. The borrower/s are supposed to pay off the principal amount of loan with the interest in the given tenure
Borrowers can enjoy tax benefits under section 24 of the Income Tax Act. Via this you can claim tax exemptions of up to Rs. 2,00,000 for interest component of your EMI paid during the financial year. According to the Section 80 C of Income Tax Act you can also claim tax benefit of Rs. 1.5 lakh of principal paid during the financial year. If borrower has their spouse as a co-applicant with them in the home loan then both the applicants can enjoy double your tax benefits. The applicant and the co-applicants, both are separately eligible for both interest and principal tax benefits according to the above mentioned acts.
The increase in the property rate across the nation (both land and building) has made it impossible for people to buy a home by only using their existing savings. There are many hidden charges and processing fees in the process of buying a house. So instead of buying a house by spending every last penny of your savings and living in constant pressure of being financially unsecured, you should definitely take a home loan.
Under section 24 of the Income Tax Act, home loans are eligible for tax exemptions. You can claim up to Rs. 1.5 lakh out of the interest component of your home loan. Also, if you are staying in the house you got loan for, then you can claim exemption on the principal amount of home loan of up to Rs. 1,00,000.
Buying a property involves large scale financial transactions. At the time of buying a property, a buyer does not necessarily have the entire amount to his/her disposal. Here home loan covers the financial gap and helps you for a smooth financial transaction.
When banks give away home loans, they finance you up to 85%-90% of the original house purchase price. The borrowers are supposed to pay only 10%-15% of remaining amount. This helps to loosen the financial burden on your shoulders. This way you don't have to spend all your savings purchasing a house.