New Delhi: Several banks in the country are competing fiercely in the home loan segment in this festive season. Moreover, the recent decision by the Reserve Bank of India (RBI) to keep key interest rates unchanged has been a big respite for borrowers who are struggling with the onslaught of the COVID-19 crisis and trying to to survive the recession.
The home loan segment is dominated by banks offering lucrative deals, with the interest rate being the key element for buyers to choose the home loan from a particular bank.
In the meantime, if you’re an existing borrower, check out these 5 tips to lower your home loan interest rate.
1. At the current interest rate on loans ranging from home to auto, customers who can afford to adjust principal and term will be able to arrive at an EMI structure that better supports their leverage ratio.
2. When the interest rate drops, customers who have been granted a variable rate home loan will invariably pay EMI at a reduced interest rate.
3. Whenever you have excess money, you can apply it to your home loan as a partial repayment. This will result in huge interest savings in the long run. Those with floating interest rates on home loans can benefit.
4. Choose your lender wisely. If you think your current lender has a higher interest rate plan, you may consider a home loan balance transfer depending on which new lender offers a better interest rate on your home loan.
5. Also remember to keep your CIBIL score high and your debt ratio low. This will help you get a minimum interest rate for a home loan.
(Disclaimer: This is just a general description and does not constitute financial advice. For clarity, you can check with your bank)