Comparison Between Home Loan EMI vs Monthly Rent

Pros	Cons
When you pay a Home Loan EMI, you are working towards owning a property. Over time, this property can increase in value and give you a sense of security and stability.	One of the biggest challenges with a Home Loan EMI is the large down payment, usually around 20 percent of the property’s value. This can be tough for many people to arrange.
There are also tax benefits to consider. You can claim deductions on both the interest and the principal parts of your EMI under Section 24 and Section 80C of the Income Tax Act.	There are also other costs like registration, stamp duty, maintenance, and insurance that you need to consider.
You have the flexibility to live in the property or rent it out to earn some extra income.	Committing to a long-term repayment plan can impact your cash flow and make it harder to save for other goals. You can use Axis Bank Home Loan EMI calculator to get an idea of your monthly instalments and total interest.
	There is also the risk of default, foreclosure, or a drop in property value due to market changes or natural disasters.

Pros	Cons
Renting gives you the freedom to choose a property that suits your budget, lifestyle, and preferences.	The biggest downside of paying rent is that you do not build any ownership or equity in the property. You also must follow the terms of the rental agreement.
You can move to a different location or property whenever it is convenient or necessary.	There is always the uncertainty of rent increases, eviction, or the property not being available once your lease ends.
You do not have to worry about maintenance, insurance, or depreciation, as these are usually the landlord’s responsibility.	You will also need to pay a security deposit, which may not always be fully refunded by the landlord.
If you receive a house rent allowance, you may be able to claim a tax deduction under Section 10(13A) of the Income Tax Act.