Looking For Larger Funding For Your New Home? HL Can Be Your Ideal Choice

Read this article if you are looking for larger funding for your new house. Here are all the necessary guidelines.


Are you planning to buy a new home? Have you considered a home loan to fund the purchase of the home? Even if you already have enough funds to buy a home, some exceptional benefits are provided by home loans. These benefits can help you save up more while buying a house. Getting a home loan also provides you with a chance so that you can invest your funds in a better place to make them grow. 

Home loans are not just an option for people who suffer from a lack of funds and want to realize their dreams of getting a better dream home. All the home buyers can get certain advantages of home loans because of the various features of the plan. Here we discuss about some of the ways through which a home loan plan can help you increase your funds and save your money in the long run:

Ways by which Home Loan Plan can Increase Funding:

  • Save up on tax

One of the top reasons most people are biased towards getting a home loan is that it is classified under Section 24, 80C, and 80 EEC of the Income Tax Act. Thus, you can save up through tax deductions by choosing to buy your house through a home loan. If calculated using a home loan calculator, one can end up saving up to Rs. 1.5 lakhs under Section 80C, along with Rs. 2 lakhs under Section 24 on the loan interest component. An additional Rs. 1.5 lakhs can be saved under Section 80EEA.  

  • Enhance your funds

If you already have enough funds to buy a house, then you can choose the home loan option to save up on taxes. You can invest the funds you have in the market where you can get tangible and attractive returns on your funds. If you use a home loan calculator and determine the interest rate that you will pay throughout the tenure of the home loan plan and compare it to the interest that you can gain by investing the funds, you will find that you are saving up by earning more interest than paying it to the loan provider. 

  • Due Diligence 

Home loan providers such as PNB Housing Finance Ltd sanction a home loan only after they have perused the current financial condition. They also follow the due diligence policy that covers all the documents related to the purchase of the house, the property, and legal clearances. Once they have cleared all the documents, only then will they pass the home loan. The due diligence policy makes home loans a safer option as now you are ensured that in your current position, you can take up the property project. 

  • Liquidity 

You never know when in life you would have to face a liquidity crunch. There are times when it is unavoidable to take a personal loan to resolve the crunch. Though, personal loans come with a much higher interest rate than home loans. If you already have enough funds to buy the home, save them or invest in them for a future need, such as a liquidity crunch. Instead, get a home loan to buy the house. 

Hence, you can see there are different cases. Some may find that buying a home using their own funds is better than getting a home loan. Nonetheless, one should make an educated decision by considering all the available options before buying a house. 

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