Top 3 Home Loan Benefits in India (Hindi) - YouTube

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Namaskar, my name is Mukul

And you are welcome to the Asset Yogi

Where we unlock the knowledge of finance

In this video, we are going to learn about three major benefits of taking a home loan

Why can it be beneficial for you to take a home loan?

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?

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 point

The first benefit of a home loan is that its interest is minimal

When you will compare it with any loan or credit card

Then you will realize that 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 loan

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.

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

So first you have to pay the loan which has the highest interest rate

So in this case, close the loan of credit card first

Then pay off 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, you can also make other investments that are allowed under 80C

Like provident fund, PPF, or employee provident fund

Or there are some FD 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 house property whether you are living in that property

Then also you can show it

Or if you have 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.

Please watch those videos too

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 downpayment 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.

So you have the net profit left

Out of that, you will deduct 3.2 lakhs

So this 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

So in leveraged returns, you can also face loss

So the risk is quite high in this

So I 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. So according to this, you may face loss also

So we call it 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 much calibers 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

So these were the top three home loan benefits

So that's all in this video, if you have any questions or suggestions

Or if you want to suggest any topic for future videos then comment below

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Till then keep learning, keep earning

And be happy as always.