Steps to be taken to get cheap home loan
Banks have increased loan interest rates after the recent hike in the repo rate by the Reserve Bank of India.
In its latest monetary policy review on 30 September, the RBI raised the repo rate by 50 basis points (bps) to 5.9 per cent.
Following the central bank’s announcements, lenders like State Bank of India, Punjab National Bank, Bank of Baroda and ICICI Bank have revised their loan interest rates.
This means the loan will become costlier, and Equated Monthly Installments (EMIs) will increase.
Those looking for new personal loans, car loans and housing loans will have to pay more with the change in interest rates by various banks and non-banking financial institutions (NBFCs).
You can still avail affordable home loans despite the hike in interest rates. Check the details given below:
festive offer
Most banks offer special festive offers every festive season, where they offer home loans at affordable interest rates.
In addition, some lenders also slash their processing fees for home loans or do not charge any during the festive season. Taking advantage of these benefits can make your home loan much less expensive.
credit score
A credit score is a person’s credit record and reflects their creditworthiness.
When you take a home loan from a bank, they assess your credit score and history to determine your eligibility for the loan.
But apart from this, having a good credit score can also get you a home loan at a lower interest rate when you look for a loan with a lower credit score.
Explore options
Today, many banks and non-banking financial companies (NBFCs) offer home loans at various interest rates.
Instead of choosing any lender in a hurry, it is advisable to explore the market and get the best home loan interest rate as per your eligibility.
Rates can vary greatly and depend on your profession and credit history. In addition, the loan amount you want and the tenure you choose for its repayment can also affect the interest rate.
