Understand The Housing Loan Interest Rates In India

Home loan rates in India are a multi-faceted element. Home loans can beconfusing; however, home loan interest rates can be even more perplexing and misleading because of three reasons: Firstly, the type, actual rates and fluctuations in rates throughout the home loan tenure can confuse a lot of borrowers. Secondly, the home loan interest rate is an over-hyped factor. Therefore, all the housing companies in India want to offer competitive rates but they cannot offer them to everyone. Thirdly, since home loan rates are seen as crucial, they undermine the importance of other relevant factors, which can be a very pricey mistake. This is exactly what you need to understand about housing loan interest rates to make smart choices.

Compare but don’t despair

In simple words, consider the types, percentage and fluctuations in home loan rates in India very thoroughly. But, do not overdo it. You need to know where to stop. You need to know how to make decisions. Most borrowers choose the housing finance company based on their housing loan interest rates. That’s the norm, right? But, what you need to understand is that you need to apply to the right housing finance company to qualify for a home loan offer and to receive an affordable version of the home loan interest rate that you are interested in. Some want guarantors while others prefer government employees. Some welcome professionals while others insist on a married couple as the applicants. So, you must compare the housing finance companies that you can qualify for, along with the best housing loan interest rates .

Be comprehensive

When you qualify for a home loan and receive an offer, you need to consider more than just the home loan interest rates. They are more than just a percent. You need to consider if you will opt for fixed, floating or hybrid housing loan interest rates. You need to anticipate if you will be able to repay your EMIs if there are any potential fluctuations. You must also consider if the housing company is flexible enough to customize your loan package to suit your needs in terms of

* Percent of down payment
* Repayment option
* Mode of payment
* Prepayment charges

You will also need to look into closely in select parts of the home loan agreement such as:

* Processing charges
* Service charges
* Service taxes
* Stamp duty
* Terms and conditions

Then make your decision about the home loan offer. This broad perspective may allow you to accept home loan rates that may not be the cheapest in India, but you can repay them comfortably.