Home loans can help people purchase an apartment/home of their choice/dreams. Often, people want to buy a new home but don't have ample funds. If they wait to gather the funds, the home rates might go up.
Home loans are the tool that most people use to construct their dream houses. With pocket-friendly EMIs, people can return the home loan amount to the lender/bank. Once the entire principal amount of the home loan is returned to the respective bank, they can get full ownership of the home.
Read on to know some pros of getting a PNB home loan in 2022.
5 Benefits of Taking a Home Loan from PNB Housing
Tax Waivers
You must have come across people having ample funds to buy a new house but still opt for a home loan. This happens because people often find ways to get a tax exemption by applying for a loan.
Paying for a house upfront with savings isn't a smart move. An individual might end up paying more taxes at the end of the financial year by paying for a house upfront.
After taking a home loan, they must pay the interest charges and principal amount in each EMI. Since the individual is paying EMIs to a financial institution at frequent intervals, a tax waiver is applied.
The tax reliefs offered to people taking PNB home loans are as follows:
- As per section 24(b) of the income tax act, an individual can get an exemption of up to INR 2,00,000 for home loan interest charges paid in a financial year
- As per section 80(c) of the income tax act, an individual can get an exemption of up to INR 1,50,000 for the home loan principal amount paid in a financial year
Co-applicant Options
Financial institutions allow people to apply for loans together. Two people can apply for a PNB home loan and reap extra benefits. Many people choose to apply for a home loan with their partner, father, or child.
The pros of applying for a home loan with a co-applicant are as follows:
- With a co-applicant, an individual can get enhanced home loan eligibility
- If there are two applicants for the same house loan, both can reap tax waivers
- With a co-applicant, an individual has less liability for timely repayment of loan EMIs
Overdraft System
Many financial institutions allow individuals to use the overdraft facility and escape interest charges. If possible, an individual can choose to repay the principal amount before the pre-decided loan tenure.
Once the principal amount of the home loan is returned to the financial institution, no interest charge is applied. By paying more than the minimum amount in every EMI, people have the option to close the home loan faster.
Top Up Options
PNB home loans also include the top-up option. With the top-up option, an individual can get an extra amount on the existing home loan.
Apart from buying a house, several emergencies can arise. For example, home renovation, medical expenses, a child's education, and many other things can demand urgent funds.
If someone has taken a home loan, they can apply for a top-up and get more funds. The extra funds taken via a top-up will be added to the existing loan amount. With pocket-friendly EMIs, individuals can repay the entire loan amount within the given tenure.
Flexible Repayment Tenure
With PNB housing, individuals can get home loans with flexible repayment tenures. You aren't forced to repay the entire home loan amount at once. With pocket-friendly EMIs, people won't feel the monetary pressure.
At the end of the home loan tenure, an individual will have a home without financial stress. People can easily return the loan amount with a low home loan interest rate.
PNB housing also has flexible eligibility criteria for a home loan. The processing fee charged for a home loan is also low (up to 0.5% of the loan amount), which is all the more reason to apply for a home loan with PNB Housing in 2022.
Conclusion
Now that you have all the information regarding the benefits of availing of a home loan from PNB Housing Ltd. contact the nearest branch today to begin a new chapter in your life.
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