New Delhi: Several banks in the nation are giving a solid contest to one another in the home credits portion this festive season.
Additionally, Reserve Bank of India’s (Rbi’s) ongoing choice to keep the key loan costs unaltered have come as a major rest for borrowers who are wrestling with the attack of the COVID-19 emergency and attempting to endure the slump.
The home loan segment is overwhelmed by banks that give rewarding proposals with the pace of revenue being the critical component for purchasers to pick a specific bank’s home advance.
Meanwhile, if you are an existing borrower, check out these 5 tips on how to reduce your home loan interest rate.
1. At the current rate of interest on loans ranging from home to auto, customers who can afford to tweak the principal and tenor will be able to arrive at an EMI structure favouring their debt-to-income ratio better.
2. When the interest rate drops, customers who have availed floating rate of home loan, will invariably pay EMI at reduced interest rate.
3. Whenever you are in possession of some surplus money, you can funnel it towards your home loan as a form of part-prepayment. This will result in huge interest savings in the long run. Those with floating interest rate on home loans can benefit from this.
4. Choose your lender wisely. If you think your current lender has a higher interest regime, you can consider a home loan balance transfer depending on the new lender who is offering a better rate of interest on your home loan.
5. Also remember to keep your CIBIL score high and your debt-to-income ratio low. This will help you get a minimum home loan interest rate.