It is not uncommon these days to note that people opt for various kinds of loans for almost every kind of need. Most loans are considered as a liability. After taking a loan, a borrower needs to cut down even daily expenses and most often one needs to accept the recurring EMI with a pinch of salt. After taking any loan, one needs to allocate a shoestring budget even for purchases that one cannot do without. A Home Loan however cannot be compared with these kinds of loan because, investing in a home is like building an asset which in most cases, appreciate with time thus making Home Loan beneficial in the long run. With this in mind, one can console oneself. 

When you go for a Home Loan well in advance, the initial ‘pinch’ of the EMI therein will not only become bearable but will also attribute a sense of achievement when you finally own a Home.

Home Loan benefits

Tax Benefit :

There are Tax Benefits on repayment of a Home Loan both on 'Repayment of Principal Amount' and 'Repayment of Interest' on Home Loan.

Leading to value appreciation :

Home Loan, as the name suggests, leads you to buy a house, an asset that yields one of the highest appreciation rates. You are not buying something that depreciates in value, the moment it leaves the showroom.

No tearing your pocket :

When you go for a Home Loan, there is no lump sum amount payable except the one which you pay as Down Payment to your Builder. Thus, the impact of shelling out a huge sum is divided over EMIs.

Pradhan Mantri Awas Yojana (PMAY) :

This PMAY scheme is only for First Time Home who wish to go for Home Loan. If you are eligible and once your amount is sanctioned, you can get an interest rate subsidyBuyer

Recovery over the long term :

Don't term your Home Loan EMI as an "expense". Once you own a house, you could rent it out and pay your EMI with the money. Thus, a Home Loan can be a winning proposition for you.

Inculcating that sense of responsibility in you :

Once your home loan EMI repayment begins, you routinely keep track of the payment due date, Bank balance and prioritize them. You thereby develop a sense of responsibility in you.Enjoy the unique Home Loan advantages by planning right early. Kotak Mahindra offers Quick Home Loans with relatively minimum paperwork and zero hassles.



Reasons why Home Loan is beneficial in the long run

Disclaimer: Terms & Conditions Apply.
Credit at sole discretion of Kotak Mahindra Bank Ltd and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.