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Saving in Liquid Funds - First and foremost benefit from having Home Loan is you save larger portion of your liquid assets for your future. By availing home loan you only pay  regular EMIs thereby saving large portion of money from your earnings to invest anywhere else.

Income Tax benefits - Home loan helps you to reduce tax liability by way of getting deduction under income tax for both principal and interest portion for foreseeable future i.e. till loan gets nil.

Opportunity Investment - You can save maximum amount as an opportunity cost of investment by only paying home loan EMIs thereby creating another investment in the near future.

Asset Creation out of borrowed funds - Most of the time people don’t get an opportunity to create an asset out of other’s or borrowed funds. Home loan gives an advantage to avail such facility over the period at a reduced interest rate thereby saving own funds and paying only minimal amount on monthly basis.

Best option to save funds - Taking home loan is an important investment decision which minimises risk of diversification of funds and concentrating on EMIs first thereby reducing excess spending on irrelevant things.

Longer tenure and low rate of interest - Since home loan in India is generally given for longer tenure ranging from 20 years to 30 years it helps to minimise burden of higher payments from monthly income since rate of interest on such home loan is also low i.e. 9 % to 11 % thereby getting ready to invest the same as long term investment.

Legal & Safety Aspects - From the point of view legality and safety while availing Home Loan Bank does its own legal search and valuation of property thereby safeguarding both the borrower and banker. In normal course the buyer may not get access to previous details of the property or owner which increases risk in the future such as court or bank matters, family problems etc. Since Legal search and background check is in the process of Bank’s Home Loan procedure the borrower can relax and have benefits of the same.

Credit RecordOne of the important aspects from the point of view Creditworthiness is Home Loan repayment track which is an important source for credit record. Most of the times this is the only valid option available for common man to maintain good credit record by paying EMIs regularly who doesn’t have access to Personal Loans, Business Loans etc.


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Category Others, Other Articles by - Nitin Hargude 



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