| | APRIL 20249loans and less than 37 percent of the mortgages were for loans below Rs. 35 lakh.Significantly, after the addition of fintech solutions and platforms which are helping in winding up any work within few minutes without even visiting the banks have attracted the young generation. This decade has witnessed a sharp and significant growth of online platforms for loan applications and processing. The number of home loan enquiries has got increased specifically in Tier-II & III cities. According to the realty experts, growing population and favorable mortgage rates are said to help the real estate industry move forward. Factors Influencing the Demand of Home LoansIn simple words, housing loan or home loan is a financial instrument which allows you to borrow money in small tranches while building the house. It helps you with the supply of money in every step of your new venture.Initially it may reflect as a major financial burden to you, but when the housing loan is completed and repaid in full, you do not have to worry about any expenses like rent, except for the usual utility payments.Home loan has the highest tenure of repayment which may go up to 30 years. So, by increasing the tenure of repayment anyone can reduce the burden of equated monthly installment.With each passing day, the price of property is getting increased and in some major metro cities like Bengaluru, Mumbai, and Hyderabad it has surged up to a sky-touching height. In such a case if you own a property in these cities after 3-5 years, you will get 10x hike in the prices in case you resale your property. According to, section 80C of Income Tax of India 1971 Act, an individual is eligible to claim a deduction of up to Rs. 1.5 lakh. A deduction of up to Rs.2 lakh is allowed on the interest portion under Section 24B of Income Tax of India Act. Government of India provides a system of tax deduction on the principle as well as in the interest rate, to encourage more and more people to buy their own home.In case you are buying the second house, you can claim the entire amount of housing loan interest paid under Section 24B of Income Tax Act. Landing on the customized assurance of the home Loan, get the keys of your `Abode of Happiness' and start making memories !!Loan PrepaymentAs home loan is a big liability, so people always wants to prepay some more amount at a time so that he can repay the loan faster. This prepayment will also help you to save your money which you need to pay as a part of EMI. A standard home loan interest may range between 8.5 to 9.5 percent. Some banks charges higher interest rates for home loans, in that case, prepayment of home loan is a good choice as you can save up to 3-5 lakhs with this instrument.
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