Why apply for a home loan?

With the rapid shoot in real estate prices, it is becoming increasingly difficult if not impossible for the average Indian to buy a house depending solely on one’s own savings. Buying a home is a huge step of one’s life and involves a lot of anxiety and tedious exploration. This is where home loan comes in as a blessing. A home loan is usually a huge liability considering the amount of money involved and the long tenure. However opting for a home loan offers substantial benefits like tax benefit on the interest paid and low interest rates since the period of repayment is very long.


Choosing to buy a house through a home loan is very profitable as the real estate prices keep appreciating at a fast pace. Hence by delaying the purchase of a house to accumulate personal funds will not be beneficial in the long run. Applying for a loan is more worthwhile in the long run as one has to pay a low price initially. Moreover, the home loan eligibility criteria has become much more relaxed overtime. These days all banks offer home loans to practically any individual with a regular income. However the eligibility criteria might vary slightly according to the preferences of the banks.


Home loan eligibility generally depends on the income and the amount of assets owned by an individual. The more the income of a person, he will be eligible for a greater value of loan amount. Home loans are generally available to salaried individuals, professionals (doctors, charted accountants) and also self-employed individuals filing for income tax returns. Many banks also offer online home loan eligibility calculators to determine the amount of loan one can obtain from a bank. One only has to enter certain financial parameters such as income and amount of assets owned and the loan eligibility amount will be calculated automatically. This feature is very helpful as it will suit your financial needs perfectly.