Steps to take to get a cheaper home loan
Banks have increased the loan interest rates following the recent hike in repo rate by the Reserve Bank of India.
In its latest Monetary Policy Review, on September 30, the RBI increased the repo rate by 50 basis points (bps) to 5.9 per cent.
Following the central bank’s announcements, lenders such as the State Bank of India, Punjab National Bank, Bank of Baroda and ICICI Bank have revised their loan interest rates.
This means that loans would become costlier, and the equated monthly instalments (EMIs) would increase.
Those looking for new personal loans, car loans and housing loans will have to pay more with the change in interest rates by different banks and non-banking financial institutions (NBFCs).
Despite the hike in interest rates, you can avail of cheaper home loans. Check the details below:
Festive Offers
Most banks give special festive offers every festive season, where they provide home loans for a cheaper interest rate.
In addition, some lenders also slash their processing fees for home loans or don’t charge any during the festive season. Availing of these benefits can significantly make your home loan less expensive.
Credit Score
A credit score is an individual’s credit record and reflects their creditworthiness.
When you seek a home loan from a bank, they assess your credit score and history to decide your eligibility for the loan.
But besides this, having a good credit score can also get you a home loan at a cheaper interest rate as compared to when you seek one with a low credit score.
Explore Options
Today, several banks and Non-Banking Financial Companies (NBFCs) provide home loans at different interest rates.
Instead of choosing any lender in a hurry, it is advised to explore the market and get the best interest rate for the home loan as per your eligibility.
The rates can differ significantly and depend on your profession and credit history. In addition, the loan amount you seek and the tenure you have chosen for its repayment can also affect the interest rate.
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