How To Get The Cheapest Home Loan Interest Rates In India?

Interest rates in India are subject to change. Financial institutions charge the interest rates in keeping to the base rate and their margin. The interest ratefluctuates, but the margins, which are the cost of operations for the financial institutions, do not alter.

Getting the cheapest home loan interest rates in India:-

1. Credit score:

The foremost thing the housing finance company in India checks once a client approaches them for a loan is the credit score. You must have a good credit score in order to avail a home loan in India. The credit score is one of the deciding factors of your home loan rate and it must be maintained well, so as to be able to negotiate the home loan interest rates with your financial institution.

2.Collateral security:

Home loan is a secured loan and it requires the borrower to mortgage an asset in order to avail the loan. If the mortgage is of high value or in a location of high value or the asset has a potential of value appreciation with time, then as a borrower you should negotiate the home loan interest rate with your financial institution.

3.Lenders search:

As a borrower, you must ask as many lenders as possible to present their loan scheme to you. You must negotiate with them in keeping with the scheme they offer and seek the lowest housing loan interest rate. You then choose the lender as per your satisfaction with respect to the home loan interest rates, the facilities offered such as online and mobile portals, low fees and charges, additional features, etc.

4. Transfer of balance:

The home loan interest rates change in keeping with the changes in the base rate by the Reserve Bank of India. The housing finance company seldom lets the change benefit the existing client as the task to do so is cumbersome considering the hassle of readjusting the EMI, changing the Electronic Clearnace Service and accepting new post-dated cheques. Thus the option of transferring of balance from one bank to another is offered by the housing finance company of India. By doing so, you may then avail the lower housing loan interest rate offered by other finance houses and reap the benefits.

Low interest rates on huge principal amounts can make a lot of difference considering the longer repayment tenure. One must be on a look out for any policy change by the RBI or the reduction in base rates in order to avail the benefits of low interest.