Home Loan at Low Interest Rate: Repayment of home loan is a big challenge and sometimes people get home loan at different interest rates. The actual home loan interest rate depends on several factors including the loan amount and CIBIL score. Learn what you can do to reduce home loan interest rates.
A good credit score will ensure an affordable loan
- A person’s credit score shows the repayment history, credit utilization ratio, existing loans and timely payment of bills.
- Your credit score plays an important role in deciding how easily you will get a home loan or the rate of interest.
- If your credit score is good then you will get loan easily at low interest rate.
Women borrowers get cheaper loans
- It is better to take a home loan in the name of a woman as women get better deals on home loans (as compared to men).
- Women get 5 basis point cheaper home loan.
- You can take a joint home loan with a woman in the family. In this case the interest rate will be even lower.
Borrow only what you really need
- The loan amount also plays a role in determining the interest rate.
- The interest depends on your loan amount.
- The higher the loan amount, the higher the interest rate.
- So, borrow only that much money that you really need.
age and profession
- Banks give quick and low interest loans to the salaried people. This is because they see a chance to get the money back quickly.
- Banks are shying away from giving loans to the elderly. Or they charge higher interest rates.
take loan from your bank
- Take a loan from the same bank in which you have an account.
- Banks provide loans to their regular customers easily and at low interest rates.
interest schemes
- Banks offer 3 types of interest schemes – Fixed Interest, Floating Interest and Flexi Interest.
- Schemes also affect the interest rate.
- In a fixed home loan plan, a home loan is available at a fixed rate from the bank.
- In a floating home loan scheme, the interest is linked to the base rate of the bank. A change in the base rate causes an increase or decrease in the interest rate.
- Flexi home loan plan is a combination of floating and fixed plans. Here, customers can get their plan fixed or floating in between the loan tenure as per the requirement.
- You can also take the advice of an expert before choosing an interest plan.
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