Advantages of taking a home loan for Flats in Calicut

Calicut is a thriving, cosmopolitan city on the coast of the Arabian Sea, located in the northern part of Kerala. The city has always opened its arms to all who came here, welcoming them warmly no wonder, then, even visitors decided not to return, and settled in this beautiful and historic city. An important seaport in ancient times, it continues to be a major hub of trade and commerce. Its strategic location, outstanding connectivity by air, road, and rail, the rich heritage, and emergence of the city as an IT hub are all reasons why Calicut is the ideal location to settle in.

Calicut is also renowned as the city that does not sleep. It is a safe place where citizens can roam around without fear at any time of the day or night. All these factors have pushed the demand for residential spaces high up, and real estate market trends in Calicut reveal that flats are preferred over individual homes.

Flats offer a number of advantages over detached homes, like increased security, ease of maintenance, enhanced comfort, and availability of lifestyle amenities. In fact, the demand for premium lifestyle flats is soon overtaking that for functional and simple flats.

If you are looking to move to Calicut, or move into your own house, you should look at apartments for sale In Calicut. There are many considerations you have to look into, like the location, builder, size, and so on, but probably, the most important factor is the financial aspect.

You can either pour in all your savings, and take money from your family, or you can choose to avail a home loan. We strongly recommend you do the latter, as there are several advantages of taking a home loan in Calicut. Let’s take a look at the most important benefits:

Tax Benefits 

The government of India offers tax deduction on both the principal and the interest on home loans to encourage more people to buy or build their own home. In one financial year, you can claim up to Rs. 1.5 lakhs under Section 80C of Income Tax of India, 1971 Act. you can also claim a deduction of up to Rs 2 lakh on the interest portion Section 24B of Income Tax of India Act. You can claim these deductions once the house construction is complete, and not while it is under construction.

No Prepayment Charges

Most banks and financial institutions charge a prepayment penalty when you make payments to close existing loans. But this is not applicable on home loans, this means whenever you have surplus funds, you can make partial payments towards your home loan and reduce your loan and interest burden.

Low-Cost Debt for Asset Creation

Another huge advantage of taking a home loan in Calicut is that interest rates are usually much lower, which means that you have a low-cost debt to acquire or build an important asset.

Balance Transfer Facility

You have the option of transferring your existing home loan to a different bank or financial institution in case they offer you more favourable terms, like lower interest rate, and so on.

Own your Dream Home

Owning your dream home becomes easier with a home loan, it is rare for most people to have that much money lying around in the bank. Monthly instalments can make it easier, and this is one of the biggest advantages of taking a home loan in Calicut.

Long Repayment Tenure

Home loans have a long repayment tenure, even up to 30 years. This way, you can ensure that you have lower EMIs to pay each month. Using a loan EMI calculator, you can see what your EMI will be for each tenure that you choose.

Enjoy Capital Appreciation

Property values generally appreciate, as there is limited availability of property. It cannot be increased. But the demand for property is always rising. Therefore, you can benefit from the property appreciation, and make a good profit when you sell the flat.

Avoid Paying Rent

Rents can be pretty high, especially in big cities. Not only do they strain your monthly budget, you still have no rights over the property. If you pay EMIs on the home loan, one day, the property will be yours. That makes a huge difference. It also ensures you have sufficient liquidity in hand, and this is a huge advantage of taking a home loan in Calicut.

Helps Build Credit Score

Availability of a home loan is easier than other loans like personal loans. As you keep paying the EMIs, you can easily build a healthy credit score. This will benefit you greatly when you want to apply for credit cards or other types of loans.

Due Diligence

When you apply to an authentic financial institution for a housing loan, they will do the due diligence and make sure that the property is up-to-date with documentation and that all legal formalities have been fulfilled. They will also check if the builder is reputable, and so on, and only then disburse the loan.

Conclusion

Now that you are aware of the many advantages of taking a home loan in Calicut, your next step should be identifying the right financial institution. Are you wondering which property to purchase? 

Without a doubt, it should be from PVS Builders. Being one of the most reputed builders in Kerala, PVS Builders have got some of the most outstanding projects in the best localities of Calicut, featuring world-class amenities. Check them out today.

FAQ

What are the tax benefits of taking a home loan in Calicut?

The government of India offers significant tax deductions on home loans. You can claim up to Rs. 1.5 lakhs on the principal amount under Section 80C and up to Rs. 2 lakh on the interest portion under Section 24B of the Income Tax of India Act. These deductions are applicable once the house construction is completed.

Can I prepay my home loan without any extra charges in Calicut?

Yes, most banks and financial institutions do not charge a prepayment penalty for home loans. This means you can make partial payments towards your home loan whenever you have surplus funds, helping reduce your overall interest burden and loan tenure.

What is a balance transfer facility in home loans, and how can it benefit me in Calicut?

The balance transfer facility allows you to transfer your existing home loan from one bank to another that offers more favorable terms, such as a lower interest rate. This can help reduce your monthly EMI and the total interest payable over the loan’s tenure.