Around 20 years back, owning a home was considered a luxury. You could only buy a home if you had saved up enough to cover the majority of the expenses. But, times have changed since then. Today, home loans are easily accessible and more so can be availed online! The whole process has become quick, simple and easy and is not as daunting as it used to be once. This has led to more people opting to take a home loan to build their dream house.
A home loan by no means is a small loan. It is a significant amount and this is why even a single point difference in the interest rate can have a huge impact. Every borrower wants to get the lowest possible home loan interest rate.
But, how can you do it?
Here are a few tips to help you out.
Compare Your Options
When you buy a car, do you get the first one you see? No! Then why should you do that for home loans? You can visit the websites of different lenders and compare their base rates. This will give you a general idea of the prevailing market conditions. You can also look at the eligibility criteria of different banks or Non-Banking Financial Companies (NBFCs) to see which ones you qualify for. Based on these two considerations, you should be able to narrow down the list to two or three lenders. You can now approach them with your application and compare the interest rates they provide.
When you are down to choosing between two lenders, you are in a good position to bargain. Take the offer from the lenders to each other and try to get them to lower the interest rate. However, do keep in mind that can only lower the rate to an extent for each client. But, as mentioned before, since we are talking about a significant loan amount, even a small percentage point difference matters.
Do Not Apply to Too Many Lenders
One of the first things that every financial institution does when checking a loan application is to check the credit score. Each enquiry gets recorded and the next person pulling your records can see that you have applied to multiple lenders. While it is alright to apply to two or three places, you should never apply to too many lenders. It signals to the lenders that you are desperate for a loan and reduces your bargaining capability.
Avail Pradhan Mantri Awas Yojana
If your annual household income falls between INR 3 lakhs to INR 18 lakhs and you do not currently own any house, you will be eligible for discounted interest rate under the Pradhan Mantri Awas Yojana. There are different categories within this scheme and interest subsidy varies for each category. Under this scheme, you can get interest rates on home loans at around 6.93%. When you approach a lender, check if they are offering home loans under a scheme and then check if you are eligible. If you are, then go ahead and apply for a loan under this scheme and enjoy the benefits of reduced interest rate.
Maintain a Good Credit Score
Your credit score is reflection of your history as a borrower. It is calculated based on how many loans you have taken and how diligently you have repaid those loans. It, therefore, tells the lender about your reliability as a borrower. Naturally, if you have a good score, the lender will trust you to repay the loan on time and can offer you a lower interest rate on home loans. On the other hand, if you have a bad credit history, then you will be charged a higher home loan interest rate. You will have more options and more bargaining power if you have a good credit score.
Get Your Home Loan Now!
Are you searching for a lender that can offer you the best possible interest rate? If so, then Finserv MARKETS is exactly what you are looking for. We offer the perfect financial support to help you buy your dream home. You can check your eligibility and get an estimate for the monthly EMI from our website. So why wait? Avail your home loan with us, today!
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