Tips To Get A Home Loan on Lower Interest Rate In 2024: Home loans are long-time loan facilities that are provided to customers by many banks and financial companies. but due to higher Repo rates of RBI customers have to pay a large amount to the banks as interest rates. However you want to get relaxation on interest rates or want to get lower interest rates on home loans then you can find multiple banks and financial companies. Today we are discussing with you some easy and simple steps that will lower the interest rates on your existing home loan and you can easily repay the EMI accordingly.
Interest rates on home loans are decided by multiple factors including the credit score of the customer, loan amount, Repayment option of the loan, Repo rates of RBI, and other conditions. RBI is charging a 6.5% repo rate on home loans from the banks and has not changed the rates in the latest meeting of RBI on 8 December 2023. So customers who are getting home loans will have to pay the same interest rates to the bank as there are no changes in the Repo rates by RBI. However, if you are an existing loan payer then you can use some techniques that may reduce the interest rates on your candidature. But if you are still searching for home loans then you can compare the interest rates of the banks as customers are getting the offer of 8% to 12% interest rates in various banks on home loans.
Tips To Get A Home Loan on Lower Interest Rate In 2024
Request the manager individually to reduce the interest rates
Interest rates on the loan amount are decided by the lender and borrower. If you are financial condition is not suitable to pay higher interest rates then you can request the manager of your bank to lower the interest rates on your application. You can directly email the manager or can also visit physically the bank to discuss your solution. Many times, customer relationship managers and bank managers reduce interest rates on the home loan for specific customers of their bank.
Transfer home loan to the other bank
Banks have a variety of offers to their customers To transfer their existing loan scheme with their bank. So customer can get an offer to pay low interest rates if they transfer their loan scheme to another bank. However, it should also be considered that if you transfer your loan file to another bank then you have to pay extra fees to your existing bank as a penalty. However, if you transfer your existing loan to another bank then the bank will charge you some extra amount for processing fees, document verification, and other charges and it may cost between 10000 to 12000. So if you are shifting your existing loan offer to another bank then you should check all other expenses that you have to pay and the time of transferring the home loan.
Credit profile and salary matters!
The main criteria while providing home loans to customers is the credit score. The credit score should be between 750 to 900 which is considered a good CIBIL score. How much your credit score is lower than 750 you will be charged higher interest rates accordingly. If you are working in a good job profile or Getting a higher salary the bank will also reduce the interest rates and provide a higher loan amount for your application due to your higher chances to repay the loan amount.
Tenure of the EMI
You can calculate your net salary and after that prepare the EMI to repay the home loan amount in the bank. If you use the online calculator to calculate your total payment for a specific loan amount in a home loan then you can easily find out the principal amount which you have to pay and the additional interest rates which you have to pay for your loan scheme. So if you prepare the EMI according to the salary and your paying capability then you will get over of low interest rates loan due to unchanged EMI till the maturity of the loan scheme.