There are many different types of loans available in the market. But out of all these, home loans are unique, thanks to the advantages and features associated with them. So, what are the reasons you should opt for a home loan instead of other financing options? Well, let’s find out.

Flexible timelines for repayment 

For long stretches of time, home loans last, usually reaching 10 years. This means that taking the long tenor into account, you are eligible to schedule the repayment in an acceptable way. By pre-paying the outstanding interest, you may even opt to close the account until its tenor. However, depending on the terms of your arrangement, your lender can impose prepayment charges.

You may make use of PNB Housing’s online home loan calculator to figure out the repayment tenure that you can opt for, depending on the amount of money you borrow.

Tax advantages

You become eligible for some tax incentives by getting a home loan, which will save you some serious cash. Any principal repayments up to INR 1 lakh are tax-deductible per year, according to Section 80C of the Income Tax Act, 1961. This law applies, however, only to owners of residential lands.

You will also claim tax deductions limited to a cap of INR 1.5 lakh per annum on the interest payments you make.

Even the application fee you pay when filing is considered as interest, which ensures that it will be deducted from your taxable income. This is another explanation why, instead of having to fund your home purchase from your own pocket, you can apply for a home loan.

Choose the interest rate that best suits you. 

A home loan provides either a fixed rate of interest or a floating rate of interest. When you take the loan, a fixed interest rate is set at a certain figure, which stays the same until its completion.

On the other hand, a floating interest rate fluctuates due to current market conditions. You can choose either a fixed-rate loan or a floating-rate loan, based on the requirements.

Fast appreciation of your capital 

A real estate investment can turn out to be very profitable for you in the long run, judging by the demand for quality housing in India. Over the last few years, rentals, as well as building costs, have slowly risen and this development is expected to continue in the future. From the convenience of your own office or residence, you can even apply for a home loan over the Phone.

Fast approval

Having an online home loan in India doesn’t take much time. In just 5 minutes, PNB Housing approves your Home Loan online application. In comparison, if you’re a salaried person, when you apply online, you pay a registration fee of just 0.8 percent. Choose PNB Housing for the best home loan interest rate in India. Visit your nearest branch and ask for assistance from their licensed professionals.


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