Buying a home back in India is a dream for many NRIs; a dream that can quiet easily be turned into a reality with the help of an NRI Home Loan.
It gives you the financial momentum you need to overcome 2 major obstacles on your journey to becoming a homeowner; the first being the lack of sufficient funds and the second obstacle is that of property prices in India, which are quite honestly going through the roof these days.
Such loans provide you a major chuck of the funds you need to buy your own sweet home, as much as 70% of the property’s value in some cases. Add to this attractive NRI Interest Rates, comfortable loan tenors and flexible repayment options and you get one of the easiest paths to becoming a homeowner, even in this age of sky-rocketing property prices.
Unfortunately, even with such lucrative features, many NRIs keep their distance from these sort of housing loans; a majority of them simply because they are afraid the interest payments on such a loan will put their financial condition through unwanted turbulence.
But this is more of a misconception and to prove it, this article will give you more than good reasons why you shouldn’t worry about interest rates and rather look at them as a blessing in disguise.
1. Interest Rates in India are at an all-time low, and could fall even lower.
That’s right, the interest rates, including NRI Interest Rates, are at an all-time low. What’s more is that some experts believe that these rates will fall even further in the near future. So not only is it a good decision to opt for an NRI Home Loan and pay interest rates, but it’s a decision that could get even better in time if you opt for the floating rate of interest.
2. Paying interest is better than saving to buy a property.
If you were to save-up funds to buy your home, it’s safe to say you’d be saving for years on end. The rate of inflation and the rising cost of property will only make things that much more difficult. But, opting for a home loan and paying the interest allows you to become a homeowner now, without having to save all your life to a buy a home.
3. Paying Interest gives you access to one of the best investment in India – property.
Property is one of the best investment in India today; your NRI Home Loan and the interest rate it comes with allows you to buy into Indian real estate without even having the funds to do so yourself. By the time you pay-off the loan, your property’s value should have appreciated considerably enough to cover the total interest paid with ease.
4. Save tax against your NRI Interest Rates.
This is probably one of the biggest reasons why you shouldn’t be afraid of the interest payable on your NRI Home Loan. The interest amount you pay towards your home loan allows you to claim deductions up to Rs. 2, 00,000 annually under section 24 of the Indian Income Tax Act.
So there you have it, 4 reasons why NRI Interest Rates are nothing you should be worried about.