lowest home loan interest rate

Less Known Pointers that Can Affect your Home Loan Rates

If you want to buy a home using the home loans in India facility, then you can do that and move into the abode of your dream. 

But the facility comes with the home loan interest that you also need to bear over the tenure along with the EMI amount. 

It means that the home loan EMI affects your income and outlays for a considerable time. If your cibil score is higher, then you can avail the lowest home loan interest rate. 

Availing the lowest home loan interest rate means that you can pay lower EMIs and manage your expenses better. 

On that note, let’s check out some pointers that can help you avail lowest home loan interest rates in India. Read on!

  • Your cibil score 

As discussed, your cibil score is among the key pointers that lenders check while processing your home loans in India application. It is a mirror of your creditworthiness and impacts the lender’s faith in your ability to repay the same. A cibil score of 750 or more is what is considered ideal in availing the lowest home loan interest rate. By making timely repayments towards the loan EMIs and more, you can keep your cibil score improved. If your credit score is poor, then you may get the loan approval but at a higher interest leading to pay increased EMIs. 

  • The location and the value of your home 

The next thing that lenders may consider while determining the interest rate is the location and value of your home. If your home is located in an area with growing infrastructure with facilities like ATMs, banks, hospitals, then it may values higher. Also, if the location of your home is near to the airport, railway station and bus terminus, then its value may be higher. In this case, the approved housing finance amount may be higher with the lowest home loan interest rate. It is because the lender may find it easier to resale the property if you default. On the other hand, your applicable home loan interest rate will be higher if your home is located in an area with poor growth and infrastructure. 

  • The way you use the credit card

If you use the credit card for making multiple purchases and make timely repayments, then your credit score may be higher. It may help you get the lowest home loan interest rate. On the other hand, your home loan interest rate will be higher if you are a credit card revolver even after making a timely minimum due amount payment. Hence, the way you use the credit card may affect your future home loan interest rates. 

  • Higher credit utilization 

You may not have breached the entire limit on your credit card and may have a perfect repayment track record on all debts. However, your credit score may still take the hit if you are close to exhausting the limit of the credit card. You should know that the higher utilization of the credit card limit may also affect the being offered interest rate. Thus, when you have any loans to apply and if you want a lower rate on it, then you should exceed 40% of the credit limit. 

Quick tips to get quick approval on home loans

  • Decide the loan amount that you will find easier to repay. For that, you can use the loan EMI calculator and the eligibility calculator. 
  • Maintain a cibil score of 750 or more to prove that you can manage loan EMIs in the future without defaults. 
  • Compare all available home loan offers on a third-party website and pick an offer that matches your needs and repayment capacity the best. 
  • Buy a home in an area with proper growth and infrastructure. 

By considering the discussed pointers, you can easily get your hands on the lowest home loan interest rate and pay lower EMIs.  

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