One of the biggest responsibilities is to buy a home and for that you need to go for home loan. Gone are the days when you only had to depend on banks for home loans, but now you can get at NBFC and finance companies. The interest rate differs and eligibility criteria too. Finance companies offers home construction loans are interest rates depending on the market. Home financing can be burden for many, but also brings some benefits along-
Tax Benefits-This is the biggest benefit you can have when looking for home construction loan. Under the 80c of Income Tax of India 1917 act, there is a tax deduction up to Rs 1.5 lacs. You can claim for the tax deduction under IT after the construction of house is completed.
Balance Transfer- Home loan or home financing also offers balance transfer facilities. If you have anyone who can offer low interest home loan compared to the current lender, you can transfer the balance.
Saving Money on Rent-In case if you are living in a rented house and spending higher income over it, then taking a home loan and buying a new home is better. You can pay the instalments by renting your space.
When you look for home financing companies, make sure you compare different finance companies. This will help in getting loan under low interest from right company.