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How do I get Cheapest Interest Rate on My Home Loan?

By Finserv MARKETS - Apr 17,2019
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How do I get Cheapest Interest Rate on My Home Loan?

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.

Bargain

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!

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522