What are the Home Loan Benefits in India in 2023 | Advantages and Disadvantages of Home Loan Tax Benefit


Hey, I’m a Social Investor today we unlock the knowledge of finance in this blog, we are going to learn about Home Loan Benefits in India and three major benefits of taking a home loan Why can it be beneficial for you to take a home loan?

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What are the Home Loan Benefits in India in 2023 | Advantages and Disadvantages of Home Loan Tax Benefit

If you have any surplus cash Then taking a home loan can be very beneficial for you because you can invest your spare cash in another alternative investment and you can earn better profits So why am I saying this?

Home Loan Benefits in India

We will see the reason. Let’s go straight towards the blackboard So stay tuned with the video so that you will not miss any important points you will get the least interest rates on a home loan If I talk about today then you can easily get a home loan at the rate of 8.25% to 8.5% But if you compare this with a credit card or personal loan Then the interest rates on those loans are very high.


So if we talk about credit cards for example Then the interest rate charged from you is approx. 30% per annum If we talk about personal loans Then on today’s date, you will get a personal loan at the rate of 12 to 15% So if you talk about a car loan Then you will get a car loan for a minimum of 9 to 10% Sometimes it happens that people say I am getting a car loan at 6 or 7% The financing company of the car is providing loans at less interest rate.  Then consider that another cost is being added to that loan.  It is being added to the cost of your car.

Home Loan Benefits in India
Home Loan Benefits in India

If we talk about a bear bone loan, if you take a loan from the bank independently Then you will always get more interest rate on a car loan than a home loan So for you, 8.25% is the lowest interest rate Then for you, it is the most beneficial If you have other loans going on, then pay them off first not a home loan the personal loan On the third,

pay off the car loan and don’t pay off the home loan so fast because it has other benefits too.  We will discuss the other benefits also Then comes your tax benefits. In the tax benefits, you get the benefit of principal repayment under Section 80C So if we talk about its limit then as of FY 2017-18,


then you are getting the limit up to 1.5 lacs in this If you watch this video in the future Then maybe the limit will change but most likely you will get the tax benefits If the limit of 1.5 lacs is exhausted by the home loan If your home loan principal repayment is more than 1.5 lakhs per year Then you can cover it here Otherwise,

home loan tax benefit calculator

you can  also make other investments that are allowed under 80C Like provident fund, PPF, or employee provident fund or there are some FDs that are covered under 80C You can claim these types of investments under 80C But because a home loan is quite a big chunk It will  cover more than 1.5 lakhs of principal repayment The second benefit is interest repayment under Section 24 So under Section 24,

you can show a loss from the house property whether you are living in that property Then also you can show it or if you have e rented the property then you will have to show the rental income Along with that,

you will show the interest repayment as a deduction So the loss from the property due to interest in this Its limit has been set to 2 lakh Rs in FY 2017-  18 So you can claim the deduction of up to 2 lakh per year After that, if the balance loss is remaining Then you can carry forward it to the next year So I will make some detailed videos about the tax benefits.


you can also read about Short Term Investment Plans

advantages and disadvantages of home loan

After that, the third benefit is a higher return on investment So why am I saying higher return on investment? We will understand this with a number Assume your property gets appreciated by 15% in a year Assume the market price of the property goes 15% up Okay?

Assume you have bought the property for 50 lakhs last year and now its price is 57.5 lakhs, it is appreciated by 15% So what will happen in this? Assume you have bought this property for 50 lakhs Rs cash and now its price is 57.5 lakhs Rs.

Then you got a profit of only 15% But assuming you have taken a loan of 40 lakhs Rs for this and assume you have made the down payment of 10 lakhs Rs Only 10 lakhs Rs are gone from your pocket.  So, I will write the down payment here.

In this case, your main profit is 57.5-50 Your profit is 7.5 lakhs On the loan of 40 lakhs Rs if you have given the 8% interest rate Then I will do the calculation of the interest rate Assume you have paid the interest of 3.2 lakhs in this according to the 8% interest rate The loan is 40 lakhs According to 8%, you have paid the interest of 3.2 lakhs Rs in one year.

home loan tax benefit 2022-23

So you have the net profit left Out of that, you will deduct 3.2 lakhs So which will be your net profit So this will be 4.3 lakhs If you sell this property on today’s date at 57.5 lakhs Rs Then you will get a net profit of 4.3  lakhs Rs So if you calculate its percentage returns on this 10 lakhs Rs Only 10 lakhs have gone from your pocket,

you have used the bank loan for the rest So the amount of 10 lakhs Rs has become 4.3 lakhs Now if you calculate its percentage returns Then it will be 43% So now, the returns or ROI of 43% is a bit too much.

The market price has increased by 15%, but for you, it’s 43%. This is mainly because of the loan So we can call it leveraged returns in leveraged returns, you can also face loss.  am not advising you to always take a loan because you will get profit from that Assume it gets down by 15%, assume the price of the property becomes 43 lakhs instead of 50 lakhs. 

home loan benefits for ladies

So according to this, you may face loss also what we call leveraged returns.  So, if you want to see this type of high returns then invest at the time when the rate of the property is low If you take a loan and buy the property at that time then you will get benefit from that. 


So, this 15% return can become 20% or 25% So you can think about how much benefit you can get. So, all these things depend on the market timing How many calibres do you have?  How you can identify the property market? So, it depends on all these factors.  But I must explain to you the calculation that you can earn higher returns on investment by taking a loan.


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