Buying a home is a significant life goal for many, including you. Purchasing a home helps you handle many things, financial or non-financial. It ensures a safe place to live with your loved ones. You acquire asset ownership, translating to immense financial security and capital appreciation potential. Not to forget the pride of seeing your nameplate at the home entrance, which lets you experience a sense of achievement.
Today, the real estate market is at its peak. Hence, you need a significant amount to buy a house. Apply for a Home Loan to finance your home purchase. It lets you borrow a considerable amount at a competitive interest rate based on your eligibility. The Loan repayment takes place in Equated Monthly Instalments over your chosen tenure, ensuring you do not feel burdened.
You may apply for a Home Loan individually or with a co-applicant. The second option is beneficial in several ways:
- Improved chances of Loan approval
The bank considers your Loan eligibility to decide whether to approve your Loan request. The bank approves your Loan request only when you meet their eligibility criteria. The Home Loan eligibility is precise, so it is possible that you lack somewhere. Applying for a Home Loan with a co-applicant is helpful as it covers up your eligibility factors. This may improve the chances of Home Loan approval.
- Significant Loan amount and competitive interest rates
The bank considers your Loan eligibility to extend a suitable Loan amount at a competitive interest rate. As mentioned, when you apply for a Loan with a co-applicant it may boost your eligibility. This way, you can borrow a higher Loan amount at a fair interest rate. This helps you finance your home purchase without making any compromises.
Use the Home Loan eligibility calculator to get an idea of the Loan amount you can borrow. The calculator is readily available for free and unlimited use on the bank's website.
- Eases repayment
A Home Loan is a long-term financial commitment, so you may feel financially drained at times. However, having a co-applicant can prevent this. Your co-applicant is equally responsible for the Loan repayment, ensuring that the entire repayment load does not fall on your shoulders.
Note that a delayed or non-repayment reflects negatively on both your and the co-applicant's credit history and score. Therefore, both must keep up with timely Loan repayments.
- Tax benefits
Financing your home purchase with a Home Loan can be beneficial. You and the co-applicant can claim a tax deduction of Rs. 1.5 lakh on the Loan amount under Section 80C and a tax deduction of Rs. 2 lakh on the interest payment as per Section 24(B) in your respective tax filings every fiscal year.
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