Know Advantages and disadvantages of Simple Home Loans

A home loan is taken from a bank to buy or construct a house. It is a mortgage loan where the property is mortgaged to the lender as a security till the repayment of the loan. The bank or financial institution holds the title or sale deed of the property till the loan has been paid off with the interest due for it. When you will pay off the amount, you have to hand over the documents of your house. A home loan is a big liability as its tenure goes around 10 to 30 years. So before you make a decision whether to take a home loan or not, you must know both the aspects of such type of loans.

Mortgage loans are very helpful for an average earning or salaried person to have a home. Home loans are granted on the basis of your credit score and above all the repayment capacity. When you have an income on a regular basis and hold the capacity of servicing EMIs, banks will easily grant you a home loan. Moreover, the home loan comes with a longer tenure. A longer tenure means a smaller EMI amount. So you can easily enjoy the ownership of the house without being burdened with higher EMIs.

Given that you are planning to buy your own house. A home loan will save you a lot of money when compared to any other form of borrowing because all interest on the loan gets tax-deductible. That means, your interest rate actually comes down when it's going through tax, which makes sure no loss of profits for you at the end of the year. 

Are you wondering that where you can get a home loan with a good interest rate? Money in hand escapes at the lightning speed. When you know that you have a good income source but can’t save any money then taking a home loan is the best to have savings. Actually, the money paid in EMI can be considered as an investment rather than an expenditure. The reason behind such consideration is that after paying a few years of EMI you will be the owner of the house which will have a market value in cores.

 It would be a smart move if you choose the right tenure when applying for a home loan. When choosing the number of years your loan tenure will be, you should consider your future financial plans and your property’s potential gains and losses. Our loans give you a multitude of options when deciding upon how long you will be paying your home loan.

You are taking a home loan to buy a house your dream home. But what if your dream gets shattered and you are unable to repay the home loan? You may lose the property. Are you prepared for a big loss of this sort? To protect yourself against such losses, you can take insurance that covers your liability and let you sleep peacefully in the knowledge that there is enough cover to protect you from what might happen in the future.