Purchasing a home is a significant milestone for many individuals and families. It offers stability, security, and a sense of accomplishment. However, for most people, buying a home involves a substantial financial investment. This is where home loans come into play. A home loan allows individuals to purchase a home while spreading the cost over an extended period. Let’s explore some key aspects and advantages of home loans.
Kickstarting Your Journey with a Home Loan
- Do Your Research:
The home loan market in India offers a variety of options, each with its own set of features and benefits. It’s essential to not settle for the first loan you encounter. Take the time to compare the interest rates, processing fees, and repayment terms of different loan offers. Platforms like Bajaj Markets allow you to explore and choose home loans from various lenders under a single platform. This enables you to find the one that best suits your specific needs and financial situation.
- Assess Monthly Payments:
You can use online EMI calculators to determine the monthly instalments that you have to pay. You can access these calculators for free on financial services marketplaces such as Bajaj Markets. Try to prioritise long-term sustainability over short-term gratification when taking a loan. Aim for a loan amount and EMI that enables you to maintain a healthy financial cushion. This can prove to be useful in case of unexpected expenses and emergencies.
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Prioritise Your Credit Score:
A high credit score can help you secure a competitive interest rate, which can have a significant impact on the overall cost of your loan. Your credit score reflects your creditworthiness and repayment history. On Bajaj Markets, you can easily obtain your credit report for free in just a few steps. Regularly review your credit report and take steps to improve your score. Pay off debts on time and maintain a good credit utilisation ratio.
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Secure your New Home:
Use the EMI calculators available online on financial services marketplaces like Bajaj Markets. These can help you compute your monthly instalments payable. This will help you prioritise long-term sustainability over short-term gratification. Ensure that the loan amount and EMI you choose allow you to maintain a healthy financial buffer.
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Save up for Downpayment:
The more you can save for your down payment, the better. A higher down payment reduces the overall loan amount. This lowers your monthly EMIs and helps you get a better interest rate. Start saving up for your down payment well in advance and explore different savings options. These include mutual funds, fixed deposits (FDs), Sovereign Gold Bonds , and more. You can easily explore such investment tools on platforms like Bajaj Markets.
Benefits of Choosing Bajaj Markets for a Home Loan
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Affordability Through EMIs:
Home loans EMIs combine both the principal amount borrowed and the interest accrued. This structure makes your monthly payments more manageable within your existing income. Worried about paying instead of a hefty upfront payment of several lakhs? With this facility, you might have to pay monthly EMIs of around ₹30,000. This allows you to budget more effectively.
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Long Repayment Window:
A home loan makes it possible to spread the cost of your dream home over an extended period. On Bajaj Markets, you can choose home loan tenures of up to 40 years. This enables you to repay the borrowed sum over a significant period of time. Hence, you don’t have to deplete your entire savings for a single repayment.
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Flexibility and Choice:
Bajaj Markets offers a wide range of home loan options to cater to your specific needs and preferences. You can choose between fixed and floating interest rates. Fixed rates provide stability and predictability in monthly payments. Floating rates potentially offer lower rates in the long run. But they are subject to market fluctuations. Additionally, you can select from various home loan providers on this financial marketplace.
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Growing Valuation:
As you make your monthly EMI payments on time, you slowly build equity on your home. Equity refers to the portion of the property that you actually own, which increases as you repay the loan. Think of it as gradually accumulating a stake in your dream home. This accumulated equity can serve as a valuable asset. It provides long-term financial security and the potential for various future financial goals.
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Tax Benefits:
Owning a home comes with a multitude of financial advantages, and tax benefits are a significant one. The principal amount of your home loan is eligible for tax deductions under Section 80C of the Income Tax Act of 1961. Moreover, Section 24(b) allows for a tax deduction of up to ₹2 Lakhs on the interest component of your loan. These deductions can help you ultimately reduce the overall cost of your home loan.
Securing a home loan in India can be a crucial step towards achieving your dream of homeownership. Familiarise yourself with these tips and steps to increase your chances of obtaining a suitable loan for your dream home. Conduct thorough research, compare offers from different lenders, and seek professional guidance to make well-informed decisions.
Read More: Bajaj Housing Finance Home Loan: Turning Your Dream Home into Reality
