Buy A Flat Using Housing Loan or Without Using Housing Loan?

Housing Loan

Buying a home of our dreams is a very close to heart affair for anyone. For most of us it’s usually a long wait before we realise this dream of ours. We put in every penny saved out of the hard-earned money and are keen to buy the best flats as this is an investment for a lifetime and for generations to come. Some are lucky to accomplish this dream of theirs without having to avail the support of a house loan. For many others, purchasing a flat using housing loan might turn into a necessity.

You might have certain apprehensions when it comes to taking a housing loan. To take a loan or not is the first question that arises in our minds. Well, you can consider certain factors that will turn beneficial while deciding whether to avail a housing loan or not.

Some Instances Which Are Favourable In Availing A Housing Loan

  • Availability of a regular income

If you are an employed person or one who has the advantage of having a regular income on a monthly basis, then go ahead and avail a loan. You might not find it difficult to meet the monthly interest rates or EMIs that might turn up in this regard. But, if you have a doubt or uncertainty whether you will be able to meet the demands of availing a housing loan, you should think about some other alternative.

  • Housing loans with attractive interest rates

These days, housing loan providers have attractive and reliable interest options for its borrowers. You can even consider the payment of the interest as a kind of savings that you make. The amount, which otherwise you might have ended up spending for something else that might not have been as important as owning a home.

  • Housing Loans helps to ensure a legality of the flats

Buying a flat using housing loan is beneficial in a manner as it compels you to examine whether every document from the seller is accurate. The housing loan procurement formalities usually seek a detailed set of documents, which you need to procure and furnish from the seller. Thereby, you also get the advantage of making sure that all the documents obtained are in order.

  • Tax Benefit

Yet another advantage of availing a housing loan is the tax benefit that you get. Purchasing a flat with money will not give you a tax exemption.


Instances When Housing Loan Can Turn A Burden 

  • Induces A Kind Of Commitment

Availing a housing loan certainly calls for a commitment that one needs to make. Repaying the principal amount with interest every month will turn into an avoidable task. You might feel that you are indebted for the rest of your life or until the loan is closed successfully.

  • Loses You Chance Of Making Another Investment

You will be forced to trim down all your expenses to meet the payment of the housing loan’s interest every month without fail. In this regard, you might be actually missing on an alternative opportunity of investment, which could have fetched you some handsome returns.

  • Unexpected Contingencies

Life itself being uncertain calls for situations that may or may not be under our control. And if you happen to face any sort of hardships or uncertainties, it might hinder your monthly repayment, which could lead to higher penalties and other discomforts.


In Brief

To buy flat without loan can look safer when the above points are thought about. But the final decision revolves around you and your situation. If you are quite sure that buying a flat using housing loan can be managed by you, definitely go ahead with the conclusion. Remember to discuss with the family and think wisely before you come to a final decision.