Even if you are capable of buying a home using your own fund, you may still want to avail a home loan facility to save on taxes. You can thus invest your funds to earn an attractive return.
When you face a liquidity crunch and are forced to take a financing facility like a personal loan or a collateralised loan, it may cost you much more in interest compared to your home loan interest amount.
Banks exercise strict due diligence before financing a project, something that reduces your risk to a great level. They verify the project-related documents, its title and legal clearances before approving a loan on it.