When you plan to apply for a Home Loan, you must have the knowledge how you can avail a lower interest rate. There are certain factors that can make your Home Loan affordable. Those are:
Pradhan Mantri Awas Yojana (PMAY) – Credit Linked Subsidy Scheme (CLSS)
It is an initiative by the Government of India in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses by 2022. It benefits people belonging to the Economically Weaker Section, Low Income Group and Middle-Income Group of society. By availing this scheme, you can get interested subsidy on the purchase, construction, extension, and improvement of a house or dwelling unit.
There are certain conditions which you need to follow to avail this scheme. This should be your first purchase and you should not have own house.
MCLR (Marginal Cost of Funds based Lending Rate)
Base rate is the internal benchmark lending rate and is compulsory for all the banks. The earlier version of base rate is MCLR. It is a system under which MCLR ensures bank credit at fair interest rates and the repo rate is calculated as per MCLR.
To know about the other factors, read: A Few Guidelines to Get Home Loan at Minimum Interest