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Why Should Salaried Employees Go for a Home Loan?

Clix November 11, 2020


Home Loan for Salaried Employees

An average Indian salaried individual aspires to build a better life for their family and themselves and works to the best of his abilities to achieve this. One of the common dreams all of them have is to own a home someday. Considering the mounting real estate costs in India, it seems a little unattainable to purchase a home without

For salaried individuals, buying a home on a home loan makes all the more sense because it saves them from the additional cost of paying rent every month. The rent paid towards leasing a home is practically a futile cost as it doesn’t go up to creating a fund. Whereas, if the same amount is paid towards the home loan EMI, it attracts several benefits like owning the home, tax benefits on home loan EMI, easy repayment facility over a long period and more.

Let’s understand the numerous benefits for a salaried individual to buy a home on home loan:



Benefits of Home Loan for Salaried Individuals

  1. Tax Benefits on Home Loan EMI

All salaried individuals falling under the taxable income bracket always have this concern on their mind – how to have maximum tax rebate. Resultantly, they turn to investing money in different plans that end up reducing a substantial portion of their monthly income.

In such cases, buying a home on home loan is the best option as the EMI attracts significant tax rebate. Offering tax benefits on home loan EMI is a brilliant initiative by Indian Government to urge more individuals towards owning their own house. Under Section 24B of Income Tax of India Act, there is a deduction of up to Rs 2 lakh on the interest portion towards home loan. This makes it the best option for salaried individuals to opt for buying a home on home loan and get maximum tax deductions.

  1. Saves You from Trouble of Rented Homes

If you’ve been living all your life at rented accommodations, you know the struggle. Landlord’s restrictions, not being able to furnish as per your will, moving to a new place every year, shifting troubles, and adjusting into a new neighborhood are some of the issues every tenant faces and relates with.


Buying a home at easy home loan EMIs makes it easier for people to achieve what they couldn’t do with the rented houses. You have the freedom to deck up the place like you want, invite people over, and the pleasure of staying at one place forever just adds to the whole charm.

  1. Makes It Easier to Own a Home

If it weren’t for the home loan, most of us won’t be able to realize the dream of owning a home. Buying a home involves hefty amount of money and an average salaried individual can only think of buying a home by home loan on EMIs.

Home loan is easier to apply, doesn’t take too long to get approval, and once the amount is sanctioned, you can immediately possess the home by starting to live in. For most with a far-fetched dream of having their own home, home loan is the best way to go forward.


  1. Paying EMI than Rent Makes More Sense

Rent for a decent place in a metropolitan city can easily put your monthly budget in strain. Also, there is no return on the amount one keeps paying towards rent every month.

With the cost of living in metropolitan cities in India ever on the rise, it appears more sensible to pay the home loan EMI than the rent.


  1. Flexibility of a Long Repayment Tenor

One of the best features about a home loan is its fairly long repayment period that gives one enough room to plan out the finances well. Before applying for a home loan, it is a wise thing to check out the estimated EMI with a home loan EMI calculator.

This will keep you well-prepped about the anticipated EMI in the future. You can choose your desired loan tenor based on the EMI amount you can comfortably pay each month. This is an important feature for salaried individuals as they need to plan their monthly budget well in advance.


For those with a cherished ambition of owning a home someday, home loan is your best bet. It takes you closer to the pride of buying your first house ever and upgrade your living standard.

Applying for a home loan for salaried employees in India is fairly easy. Just a few basic income and identity documents along with the property documents, and you’re good to go.

Reach out to our happy-to-serve customer support for any queries on home loan application process. If you wish to avail a home loan, tap here to let us take you through the application process.


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