Advantages Of Taking A Home Loan In Your 20’s!
Investing in property is a wise decision to make in your 20’s. You can easily apply for a Home Loan at this age and be a homeowner before long. There are a numerous benefits of purchasing property using a Home Loan when you’re young.
Here’s a look at what you stand to gain when applying for a Home Loan at a young age:
1) Long Tenures: Young applicants or Home Loan borrowers are often at an advantage since they receive longer tenures as they are likely to have lower incomes at the beginning of their career. A longer tenure means you can spread out your EMI over a long period, which reduces the monthly instalments you need to pay thus making a Home Loan more affordable for you.
2) Low Risk Benefit: All financial institutions often perceive younger applicants as low risk applicants. This is because many young borrowers are highly educated and have a long working life ahead. If your job is with a reputed company and your profile is stable, the chances of your Home Loan being approved are higher.
3) Less Financial Burden: With youth and age at your side, your financial obligations and responsibilities are fewer. When there are fewer liabilities ahead, lenders can be certain that you will be able to service your Home Loan will EMIs on time, and thus will be motivated to sanction your home. From your point of view too, it is easier to pay Home Loan EMIs without the burden of other financial commitments.
Here are the Benefits of Investing in Property When Young
- Improved Income: If you match the Home Loan criteria and have the required documents, you can easily apply for a Home Loan and invest in valuable property that gives good returns. This typically involves giving out the property on rent and earning money from it on a monthly basis. Your rental income can also help you pay your Home Loan EMIs and get you enough money to save up for the future.
- Establishes a Better Credit History: Once you successfully purchase a property and start paying Home Loan EMIs on time, your credit history is sure to improve. And this helps you in taking loans in the future at cheaper interest rates, whether it is for buying another asset or for emergencies.
- A Home of Your Own is an Asset: Even if you intend to earn rental income while still paying off your Home Loan EMIs, being a homeowner means you have a ready asset. Whether you decide to live in this house with your family in the future or sell it and invest another property, a home is a big asset, adding to your financial portfolio.
Apart from the benefits listed above, as a young borrower you also stand to experience tax savings when taking a Home Loan. However, before proceeding, make sure that you compare the Home Loans and interest rates being offered by various lenders, use an EMI calculator to see how much you can afford to pay in EMIs to service your Home Loan and study the eligibility criteria carefully.
Opt for a convenient Home Loan with long tenures and low EMIs from Bajaj Finserv. Home Loan from Bajaj Finserv offers various advantages like a 3 EMI holiday that reduces the financial burden on young borrowers and has flexible payment plans too.