Advantages of home loans
Your own home – The greatest advantage of a home loan is that you can have your dream home through this loan. You don’t have to live in a rented property anymore.
Handy and easy to get to- Home loans are quite accessible and convenient as you can a large amount of money through home loans.
Many Loan options- Banks advertise various types of schemes to attract the people who want to buy a home. The real earnings for a bank come from the interest they charge on these loans.
Lower rates of interest- Banks provide home loans at lowest rates of interest than other types of loans.
Bank loans offer tax benefits- Customers taking loans from banks enjoy some relief from tax, since the percentage of income used to repay the loan is exempted from tax.
Disadvantages of home loans
Long tenure: – tenure for repayment of the loan is often very long but considering the fact that you will have your home, the long tenure can be endured.
Changing interest rate: – Interest rates for a home loan are bound to change with every change market interest rates.
In case you are unable to repay your loan, you are set to abandon your home