A home loan in India is a secured financial solution that can help you pay lower interest rate charges and reduced EMIs.
But even though it is secured, many factors may affect the home loan interest rate in India.
Read on and know more!
Your CIBIL score
A higher credit score means that you are a creditworthy person who has managed to pay all ongoing and previous debts on time. Lenders consider such applicants a safe bet. It is because they expect them to make timely repayments for a home loan in India. If your CIBIL score is 750 or more, you can get a lower home loan interest rate.
Your home loan repayment tenor
Generally, a home loan comes with a longer tenor. A large number of people go for it to pay reduced EMIs, which is good to manage other outlays. But it increases home loan interest rate charges. On the other hand, a smaller tenor may increase your EMI amount but save on interest charges.
Your age
If you apply for a home loan in India when you are still young, you may avail a large amount at a lower rate. A person nearing retirement may not get a considerable amount, and even interest charges will be higher. Why? It is because a young housing loan applicant has more workable years left than someone nearing retirement.
Your down payment amount
The higher is your down payment amount; the less will be your borrowable amount and so will be the interest charges. Hence, you should try to put down a large down payment amount and save on interest charges. This way, you can also repay your home loan in India much earlier.
You can consider these discussed tips and manage to pay lower home loan interest rate charges in India.
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