What are the benefits of home loan?

Advantages of taking a home loan

• Sense of accomplishment.
• Capital Appreciation.
• Low interest rate.
• Tax Benefit: Interest paid.
• Tax Benefit: Principal Repayment.
• Buying a home vs renting a house.

What is difference between HFC and NBFC?

NBFC, as the name suggests, is a financial institution whose business includes only loans, and no other banking services like accepting deposits, fund transfers, payroll services, etc. Housing Finance Companies (HFC) are specialized NBFC, that deal only in Home Loans.

Does NBFC loan affect credit score?

When your loan is rejected by a bank or NBFC, it could be due to your poor CIBIL score. With the rejection, the CIBIL score will dip further. And the rejection reduces your chances of borrowing further. The low CIBIL may be due to non-payment of debts, debt settlement, high credit utilization, etc.

What is the advantage of taking loan from Bank?

Low Interest Rates: Generally, bank loans have the cheapest interest rates. The rates you pay will be cheaper than other types of high interest loans, such as venture capital. As Bizfluent says, bank loans offer significantly lower interest rates than you will find with credit cards or overdraft.

What does HFC bank stand for?

New home buyers are often in a dilemma, over whether they should apply for a loan from a housing finance company (HFC) or a bank.

What is HFC in full?

HFC is a type of gas used in refrigerators and aerosols. HFC is an abbreviation for ‘hydrofluorocarbon’.

What are the benefits of taking a home loan?

The home loan can not only be taken for the purchase of the property but also the construction or renovation of the house. Tax benefits: – To encourage more and more people buy their own house, government of India provides tax deduction on the principal as well as interest paid on home loan.

What are the tax benefits of buying a home in India?

Tax benefits: – To encourage more and more people buy their own house, government of India provides tax deduction on the principal as well as interest paid on home loan. An individual is eligible to claim a deduction of up to Rs 1.5 lakh under Section 80C of Income Tax of India 1971 Act in a financial year.

What is the deduction for interest on home loan in India?

While a deduction of up to Rs 2 lakh is allowed on the interest portion under Section 24B of Income Tax of India Act. The deductions under income tax are only available after the construction of the house is complete.

What are the pros and cons of a a home loan?

A home loan is one of the cheapest borrowing tools which comes with a low rate of interest. Unlike other loans, there’s zero prepayment penalty on home loans with floating interest rates. So, there are definitely some advantages in taking the loan route. Tax benefits under a home loan