What Is Home Loan Down Payment?
A home loan down payment is the amount which a buyer of the home has to invest from his own wallet. The bank actually lends you maximum 80% amount of the total value of your home and the rest 20% of the amount is actually the responsibility of the buyer. Thus, the remaining 20% amount left after getting the home loan is known as the home loan down payment.
Arranging the home loan down payment is actually the biggest challenge for the buyer. With the prices of the property being at the peak, the estimated home down payment is always very high. And for some buyers, it gets challenging to arrange such a huge amount in a lesser time. Not even your savings are worthy enough to get rid of this situation because of the amount being charged is so high. So, what is the best way to get out of this scenario?
Personal Loan. Yes, a quick personal loan is considered one of the best ways to get rid of all the worries related to your home loan down payment. You should choose to take a personal loan to get off the burden of home loan down payment.
Why Personal Loan?
It is never a great idea to take up two loans in a row, but in this case, the only best-case scenario is opting for the personal loan. Also, personal loans are costlier than the home loans, and the tenure is of maximum five years which in case of home loan is 30 years, so you must do a lot of pre-planning but other than that you also enjoy various perks of it. These perks are listed below:
A personal loan for home loan down payment save tax
One of the best advantages of personal loans for home loans down payment is that one enjoys the tax benefit. Similar to a home loan, one can claim up to Rs. 2 Lakh on the interest paid against the personal loans and the same perks can be enjoyed in the reverse case.
You Emergency Funds Remain Secured
Availing for the personal loans for the home loan down payment can help you keep your emergency funds safe for better uses and in case of emergencies. Thus, your emergency funds remain untouched and can be called off when you are in an urgent need of money.
Easily Available
When the home loan down payment amount is high (which generally is), then it gets hard on the pocket of the buyer to arrange it in a small span of time. But personal loans make it easy and that too with the utmost ease of availability.
