Dream of buying a house? Know the benefits of home loan and how to pay EMIs on time

Home Loan: Every person wants to buy a house, due to which most people plan to take a home loan. A large amount of home loan is given for a long term. If someone takes a home loan, he is also given the option of tax exemption and prepayment. However, before taking a home loan, you should compare the home loan interest rates offered by various banks.

After increasing the repo rate by the Reserve Bank (RBI), many banks have increased the interest of their home loans. In such a situation, by comparing the interest of banks, you can take a loan at a cheaper rate. Before taking a home loan, you should check the credibility of that bank or institution. Along with this, it should also be checked that what charges are being levied by that bank or institution for giving you a home loan.

Benefits of taking home loan

The most important benefit on taking a home loan is tax deduction. According to the rules of the Income Tax Department, a person who has taken a loan can claim a tax deduction of up to Rs 2 lakh during the financial year on the purchase of a house, but it is necessary that the house is purchased for self-use. Apart from this, exemption of up to Rs 1.5 lakh can also be claimed under Section 80C of Income Tax.

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If you are living on rent, instead of paying rent, you can take a home loan and use the money you pay on rent to repay the home loan EMI. On the other hand, according to experts, tax deduction can be claimed for the entire amount of housing loan interest paid under Section 24B of the Income Tax Act on taking a loan for a second home.