Not everyone can afford to buy a home in full payment, but that should not stop anyone from achieving their dream of purchasing their home. This is where home loans play an essential role.
In simple words, the home loan is borrowing the sum of money from the banks or any financial entities to purchase a home, and that amount should be returned with interest. With the home loan being a crucial factor for so many people to buy a home, even a little plunge in the interest rates are a huge advantage for home buyers. Here are some tips that will help you get the lowest interest rates from the banks of India.
Keep up with the Loan Changes
It is essential to keep up with current changes that RBI makes regarding the home loans. The RBI announced that from October 2019 the home loan interest rates offered by the banks and financial intuitions would follow the benchmark rate instead of the previously used floating rate.
Research and Compare Rates
It is known the fact that the home loans are given based on the RRLR, it is calculated using the two metrics repo rate and the margin charged by the banks and other entities. But the banks are free to charge risk premiums from the loan takers. As a property investor, it is essential to compare loans from all the banks and choose the right ones.
Be Picky With Loan Slab
After analysing the needs and requirements, it is crucial to choose the loan slab, the rate of interest you get will be highly dependent on the loan slab. For instance, if you want to get a loan of 30 lakh, the rate of interest will probably be low when compared to the loan of 45 lakh and above.
Make your Profile Strong
Many factors affect the rate of interest, and the most significant one is your credit score. It also depends on your monthly income and monthly expenses. The bank also inspects if you are eligible to apply for the loan and even background checks if you have already had previous loans. Other than this here are some more critical factors to keep in mind.
· Refinancing- You can choose any banks at any time if they are offering a lower rate of interest instead of the current ones.
· Reduce tenure- It is essential to reduce the land tenure in order to get a lower interest rate.
· Collaborate with a partner- Instead of getting a loan alone, it is better to choose a partner who can share that interest.
· Pre-paying- The loans are paid every month, and if they are paid earlier, the interest of rate will be less.
The above are some valuable tips that help to reduce the interest of home loans while purchasing properties in Chennai. To make the process even more comfortable, choose a prominent real estate agent like My Property Boutique and buy homes only from reputed and trusted builders who have a tie-up with banks, which makes the whole loan process simpler.