Important points which affect your home loan interest rate in India

Do you have a home loan in India to apply for? Many people save for years to invest in a home. 

However, their saved amount is not enough to help them buy a home. It is where the amazing facility of the home loan comes into the picture. 

A home loan is secured. Hence, one may take it at a lower rate of interest and pay reduced EMIs. But, you need to consider a few points related to a home loan. 

If not, it may affect your home loan interest rate and led to the payment of bigger EMIs. 

Let’s know a few essential points that affect your home loan interest rate in India! 

Read on!

1. Your CIBIL score 

Your CIBIL score determines your creditworthiness if you are a safe bet for lenders or not. If your credit score is higher, it means you have paid your loan EMIs and other debts on time. Hence, a lender may reward you with a home loan approval at a lower rate. Thus, you should maintain a higher CIBIL score of 750 or more to enjoy an affordable rate of interest. 

2. The value of your property 

The property you are availing of the loan is also considered while calculating the home loan interest rate. If it is located in a good location with amenities, the rate of interest may be lower. Why? It is because it will hold a good resale value. 

3. Your debt to income ratio 

If you are already paying a significant amount every month to pay different EMIs, your income may not have much left to pay another EMI. Hence, a lender may not offer a home loan at a lower rate. 

Considering these aspects may impact your home loan interest rate. Hence, when you have a home loan to apply for, you should consider these pointers.