HDFC Home Loan: Advantages & Repayment Tips 

Many people still want to own a home in their desired cities. The fulfilment that comes from owning your own dream home is priceless. These objectives are attainable with the help of a home loan. Applying for an HDFC home loan is now a simple process. HDFC offers low-interest housing loans to qualified candidates. In addition to low interest rates, you receive tax breaks on both the interest you pay and the loan amount you return. However, it is recommended that you have a high online free CIBIL score before applying for a home loan in order to avoid loan rejection.

Advantages of HDFC Home Loan

In today’s world, there are several advantages to applying for a home loan. Aside from the tax benefits of a home loan, when you apply, an HDFC home loan includes the builder’s dependability and track record, as well as the legal paperwork pertaining to the property. Along with benefits like the HDFC home loan interest rate, there are three major benefits to applying for an HDFC home loan, which are as follows:

Low Costs

Homebuyers now have a variety of options in the low-cost housing market. This provides a house buyer with two benefits: on the one hand, he may be able to afford a larger property or get one for less money than he had anticipated. On the other hand, he may benefit from additional advantages of purchasing a home with a home loan, such as tax benefits, making a small down payment and then using a home loan to cover the remainder, and a longer loan payback period of up to 30 years.

Rates of GST on Real Estate Purchases

The rate of GST (Goods and Services Tax) on real estate transactions has been drastically reduced. Without the benefit of an input tax credit, the current GST rate on residential property purchases is 5% (1% for affordable homes) (ITC). Buying a home now allows you to take advantage of these low interest rates. As a result, now is an excellent time to apply for a home loan in order to take advantage of the lower GST rates as well as other tax advantages that come with an HDFC home loan.

Interest Rates are Low

Home loans have become more affordable as interest rates have fallen in recent years. Lower EMIs result from lower interest rates, making home loans more appealing and affordable. On their home loan application, HDFC offers their customers the lowest possible interest rate.

Repayment Tips for HDFC Home Loan

Here are a few options for quickly repaying your existing HDFC home loan:

1. Repayments in Advance

Taking out a mortgage in your twenties or thirties gives you plenty of time to pay it off before retiring. Furthermore, you can take out a longer-term home loan, which means a lower EMI for the same loan amount. A home loan can be taken out for a maximum of 30 years, giving the borrower plenty of time to repay the loan with low monthly payments.

2. EMIs paid on time

The order in which you make your monthly EMI payments has a big impact on your cash flow. If you work, your EMI should correspond to your pay date. If you work for yourself, ensure that you have enough money in your bank account to cover the EMI payment. Paying your EMI on time prevents you from incurring late fees and helps to protect your credit score.

3. Emergency Preparedness

Your financial strategy should assist you in establishing an emergency fund in the event of a medical emergency, such as immediate hospitalisation or an accident. This will prevent the money set aside for your EMI from being spent.

4. EMI Restriction

If you have any other loans, such as a car loan or a personal loan, you should add the EMI calculated using the HDFC home loan calculator to the EMI payments on your other loans to determine how much of your total earnings is set aside for loan repayments. It is best to keep loan payments to no more than 40% of your monthly income.The primary advantage of a home loan is that you can become a homeowner right away rather than waiting for enough money to accumulate. Furthermore, depending on your loan eligibility and other restrictions imposed by the home loan provider, your home loan repayment period could last up to 30 years (the longer your loan tenure, lower is the EMI amount). If you have a low credit score, you can take steps on how to improve your CIBIL score before applying for a home loan. Furthermore, a longer home loan term reduces your monthly payback instalments and allows you to manage your other expenses while managing your house loan EMIs. As a result, you will be able to have the comfort of making payments on time without having pressure on your resources.