Will I Receive Lower Home Loan Rates In India?

This question is keeping several potential home loan borrowers awake at night. Are you one of them? You have done the best you could for your dream home. But, you are not certain if you will receive affordable home loan interest rates. It is understandable. But, it doesn’t have to hinder your path to the dream home. Aright information will help you understand why you will and won’t receive the required home loan rates in India. Armed with this information, you can make required changes and avail the desired rate of interest. Lenders do not explain how you qualify for the said home loan rates. Understandably, it is a complex home loan calculation. So, explore the potential factors that may or may not allow you to avail the lower housing loan interest rates in this article.

Understand the potential threats

You need to understand that certain factors on your home loan application will increase your rate of interest. If you have already submitted your application, there is little you can do about it. But, you must understand the factors that lead to higher home loan rates or a rejection of an application as well.

* Lower credit score
* Higher debt to income ratio
* Lower or minimal down payment
* Inconsistencies in previous bill payments
* Previous defaulted repayments
* High risk employment profile

Consider the external influencers

Some of the home loan borrowers do not need to worry about these types of threats. However, few factors influencing home loan rates in India are beyond an individual’s control. So, smart house loan borrowers know that they can keep an eye on it and avoid it. Even in the best of cases, that’s all anyone can do. So, which factors should you watch out for?

* Indian economy -equities market, real estate market, employment market
* RBI rules and regulations – repo rate, base rate, prepayment rate and more
* Unstable financial circumstances

Make requisite changes

So, can you avail the low home loan interest rates you desire? If the chances seem dim, you can make necessary changes in your application. This will improve your chances of availing the better rates.

* Find a co-applicant
* Improve your credit score
* Prepay your current debts
* Consider financially more affordable property
* Secure a job in a public sector company

These changes will help you avail higher housing loan interest rates more easily. They will reduce the housing finance company’s risk and your home loan rates. That is a much better opportunity to borrow. Though, it may require certain time, effort and resources, it will be worthwhile indeed.