Home Loans in Ahmedabad

How to Get a Home Loans in Ahmedabad

Gujarat’s largest city and trade hub is the city of Ahmedabad. It is also the state’s start-up and financial capital. Home to some of the best educational institutes and manufacturing establishments in the country, the city has experienced rapid urbanisation in recent years. People from across the country come to Ahmedabad for pursing studies, conducting trade, and even visit various tourist attractions.

Availing of a home loan in Ahmedabad is a wise decision as prices of houses continue to rise in the city and remain unaffordable for most. With rapid development in the city and active social life, Ahmedabad makes for an ideal city to live in. Individuals who wish to become homeowners in this historic Indian city can simply opt for a home loan from one of the reputed banks after searching for different home loan options available.

Why is Ahmedabad a great city to live in?

Here are some of the top reasons why Ahmedabad is a sought-after city for those who want to own homes:

• The city features in the list of 100 cities that have been approved by the Ministry of Urban Development’s (MoUD) under the Smart City Mission
• It makes for one of the best cities as far as urban planning is concerned
• It offers many amenities and luxuries as a developed metro city and still comes with a reasonable cost of living
• Comparatively, low property rates let people purchase their dream homes by sourcing a home loan in Ahmedabad
• The city boasts of vibrant culture, friendly people and good food. It is also a place to dive into Indian history and culture
• It is also known as one of the cleanest cities in the country

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What is a home loan?

A home loan provides essential financial support to home buyers who wish to fulfil their dream of owning a home. A home loan is a secured loan that ensures that the home buyer avoids any financial distress while purchasing a dream home. Whether it is an apartment home or a commercial property, home loans allow individuals to buy a property of his/her choice. Often, people use home loans for home restorations or renovation purposes. Home loan interest rates are dependent on the ongoing property rates and also lending rates of various banks.

Advantages of a home loan

Some of the advantages of borrowing a home loan are:

• Income tax benefits: To allow more people to easily purchase their own house, the government of India offers tax deductions on the principal and interest payment of home loans. A home loan borrower can claim a tax deduction of a maximum of Rs 1.5 lakhs under Section 80C of Income Tax of India 1971 Act within a financial year.  A deduction of up to Rs. 2 lakhs can be availed on the interest component as per Section 24B of the Income Tax of India Act.   These deductions are only available once the construction of the home is complete. A home loan borrower cannot claim the income tax deductions if the property is still under construction.
• No prepayment cost: In the case of home loans, lenders don’t charge prepayment penalties if repayment is made before time. Thus, if a home loan borrower has surplus funds, he/she can use them for making part payment for a home loan and reduce the debt burden. However, there may be prepayment fees in the case of floating rate home loans.
• Option of Balance Transfer: A home loan borrower can avail of the facility of transferring an existing home loan to a different lender if there is a lower interest rate available with the other lender. Before availing of this facility, one can check out the Balance Transfer Calculator to gauge whether it will be beneficial to opt for this.
• Longer repayment Tenure: Home loans usually come with the longest repayment tenures going up to as much as 30 years. This can help borrowers to reduce the burden of equated monthly instalments by availing of a longer tenure. By using a loan EMI calculator, one can know how EMIs can change with changes in the home loan tenure.
• Capital appreciation: Home loan borrowers can also benefit from the rise in property prices over time.

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Conclusion

People living in Ahmedabad need not shell out heavy rentals as they can easily own a home of their choice by availing of a home loan at reasonable interest rates. The city is witnessing rapid urbanization resulting in an influx of home loan providers who offer maximum benefits to home loan borrowers.

FAQs – Home Loans in Ahmedabad