First Time Home Loan Benefits: Purchasing a home is a major financial decision after sieving through a wide range of finance options. Consequently, homebuyers are opting for home finance from banks and financial institutions that not only help them with the best finance options based on their individual specifications and requirements but also help them in the entire process of owning a home.
With the expanding housing industry landscape and increasing focus on providing the best solutions and services to the customer, availing of housing finance has now become a hassle-free process. With the advancement in technology, customers have a plethora of digital lending platforms to avail of a suitable home loan deal that is best suited for an individual.
Further, housing finance companies and financial institutions are leveraging data-driven artificial intelligence (AI) and machine learning (ML) tools to improve customer experience and enhance the lending process.
Here Are Some of The Benefits to Avail When Applying for A Home Loan For The First Time:
Tax Exemption: The current applicable exemption under section 24(b) is Rs 2,00,000 for the interest amount paid in the financial year and up to Rs 1,50,000 (under Section 80 C) for the principal amount repaid in the same year.
Overdraft Facility: If an individual is looking for frequent liquidity, one can also opt for top-up home loan with an overdraft (OD) facility. Some financial institutions provide an OD facility in a home loan top-up. Borrowers who want to pay off their Housing Loans faster and save money on interest can use an Overdraft Facility.
Women As A Co-Applicant: A women borrower or co-borrower helps to improve the chances of getting the loan. For first home buyers, having women as a co-applicant could also fetch you concessional interest rate at several financial institutions. A woman co-applicant co-owning the self-occupied house is eligible for extra interest deduction of interest of upto Rs 1.5 lakh each financial year.
Co-Applicant: There are several advantages of opting for an earning co-applicant such as enhanced home loan eligibility, equal liability for loan repayments, segregation of EMIs, income tax exemption, etc. A co-borrower’s involvement is a blessing for the loan applicant and the lender is assured of timely repayments. The responsibility of monthly EMIs is shared by the applicant and co-applicants thus easing the repayment process. Both the applicant and co-applicants are eligible for income tax exemption at the end of the fiscal.
Top-Up Benefit: Once the borrower starts the journey, they can also utilize the benefits of a top- up on home loan to satisfy variety of needs, including an unexpected financial need, medical expenditures, and supporting your child’s education.
(The author is managing director of Piramal Finance)
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