Knowing the difference between home loan and self-financing

The biggest financial decision while buying a house is whether to take a home loan or self-finance it. A home loan allows you to pay in instalments over years without affecting your liquidity for your other expenditure requirements, while self-financing means making the upfront payment without taking any debt. Both are sharply contrasting regarding their advantages and sacrifices on your income stability, savings, and future plans.

Benefits of taking a home loan

A home loan gives you financial independence. Instead of locking up a large portion of your savings in the property, you can invest your other amount elsewhere that could earn more. Home loans also have a gigantic tax benefit—you are able to deduct principal payment u

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