Top Reasons Why Salaried Individuals Must Opt for a Home Loan

Deciding to purchase a house is one of the most significant decisions we make in our lifetime. A home is a big-ticket investment that involves an upfront payment and therefore, the purchase is often a little difficult. Hence, most buyers seek refuge with housing loans. And then many are stuck with home loan EMIs for a long period. Is it still worth paying for EMIs and possessing a house for salaried individuals or is living in a rented house a better option? The most common argument for home loan EMIs is that you could pay the amount you spend on rent towards EMIs and have your asset. Even if it sounds simple, there are more points that an aspiring buyer must keep in mind before purchasing a house. Let us explore the advantages salaried individuals can get if they opt for a home loan.

1 Makes Room for Significant Tax benefits

Besides getting to own an asset, when you avail of a home loan, you also get to claim income tax benefits. The principal repayment of a home loan is eligible for tax deduction per Sec 80C. It indicates that you are better empowered to make full use of the deduction allowed. Interest payable of max Rs.2 lakh is also deductible from your income. What’s even better? If yours is a joint housing loan, both partners can claim income tax deductions up to Rs.2 lakh, provided the housing loan repayment is equally done by both.

2 Makes a Good Source of Additional Income

You can always rent out your home if you are not occupying it. You can use the rental income to pay EMIs or at least fund a part of the EMI.

3 Saves You from Trouble of Rented Homes

If you have ever lived in rented houses, you would know the struggle. Landlord’s restrictions, not being able to furnish per your choice, shifting troubles, and adjusting to a new neighborhood are only some of the common issues every tenant encounters. But if you opt for a home loan, it will make life easier for you and your family. You can easily do what you could never do in a rented house.

4 Makes Owning a Home More Feasible

Had it not been for a home loan, most of us wouldn’t have been able to realize the dream of owning a home. Buying a home involves a significant amount of money and any average salaried person can only consider buying a home only if they opt for a home loan.

Opting for a home loan is easy. Neither does it take too long to apply, nor does it take too long to get approved. Once the home loan amount is sanctioned; you can possess the home and start living in it. For those with a far-fetched dream of buying a home, a home loan is an ideal way for them to fulfill it.

5 Paying EMIs Makes More Sense than Paying Rent

Rent for a decent home in a metropolitan city can easily strain your monthly budget. Also, there is no return on the amount one keeps aside to pay rent monthly. So, rather than paying rent, it makes more sense to pay the home loan EMI and build your equity with time. Besides, it is always a good idea to invest in a property that can generate income. 

6 Offers Flexibility of a Long Home Loan Repayment Tenor

One of the best features of a home loan is its long repayment period. A long tenor always gives the borrower enough time to plan finances. Before applying for a housing loan, it is a good idea to check out your home loan eligibility and the EMI with a housing loan EMI calculator. This will help keep you prepared about the expected EMI in the near future. You can choose a desired loan tenor based on the EMI you can comfortably pay. This is an essential feature for salaried borrowers as they must plan the monthly budget.

The Final Word

For those of you who have always nurtured the dream of owning your home someday, you must opt for a home loan. It is certainly your best bet. However, if you truly want to enjoy the feeling of being at your home, you need to start planning early. You must also check all parameters, including the available lowest interest rate on a home loan. Otherwise, you may have a home, a huge home loans, and not enough funds for other important goals like your children’s education or retirement. This may cause you more stress than happiness.

Applying for a housing loan in India, especially for salaried individuals is easy. Once you have made up your mind, you can connect with our happy-to-serve customer support executives for any queries on the housing loan application process. 

Show More


Hi! This is Ahmad Hassan Butt. The owner of this website. I am an SEO expert. I have 7 years of experience in SEO.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
%d bloggers like this: