Home Loan

Home Loan: When you move out of your parent’s house for the first time, you look for house renting options. Once you find a suitable property, you settle down there for a considerable time. However, after a few years, you may hear people say that you should consider buying a house on EMI instead of paying rent. At this point, even you start thinking about the same. 

In case you are in doubt about what to do, here are some benefits of opting for the PNB housing home loan over paying rent. 

#1 Mental Relief

Nowadays, most of our actions are done for mental relief, such as emergency and retirement funds. The same thing goes with purchasing a home. There is a certain security in the feeling of “my home,” which can’t be achieved through a rented place. 

Plus, you don’t remain dependent on anyone for any tasks of the house. You can take care of everything on your own without worrying about what the owner will say. This is the primary reason why more people in India prefer buying over renting properties. 

#2 Stability in Future Finances

Rent never remains the same. After a specific period, your landlord increases the amount by a pre-determined percentage. So, the longer you stay in the property, the more rent you will have to pay. On the other hand, home loan EMIs are almost fixed. You may opt for a flexible home loan interest rate in India, but that won’t change as much as the rent. Therefore, you can easily predict the future costs and plan your funds accordingly. 

#3 Asset Ownership

Even though the home loan is a liability, you are still securing an asset for the future of your family. Once your loan gets paid, you become the full owner of the house. Then you can use that property for any purpose. Plus, you can also opt for a loan against property later in life for fulfilling any personal financial objectives. 

#4 Better Tax Benefits

Both rent and PNB housing home loan are eligible for a tax deduction. Where you can avail of benefits under Section 80C and 24B for the loan, Section 10 (13A) offers advantages on rent. However, there is a considerable contrast in the amount that can be deducted from tax. Home loan offers better subtraction than rent. A few more additional tax benefits on loan are:

• In case you have a co-applicant for a loan, both of you can claim the deduction separately on the individual amounts paid. This increases the overall benefits on tax. 
• You can avail of the benefits for your taxable income and not only on the salary. Contrastingly, Section 10 (13A) only provides deductions for regular salaried employees. If you aren’t a salaried person, you can’t get the advantage. 

Conclusion

There are several other perks of purchasing over renting. Once you buy a house of your own, you will get to know all the benefits. So, I advise you to start your research, look for home loan interest rates in India, and pick the most suitable loan alternative.