How to Get a Lower Interest Rate on a Home Loan?

A Home Loan is considered to be the best debt of one’s life, as it enables you to purchase your dream home. The rate of interest of a Home Loan is comparatively lower than any other loan, but still, you should try to get the lowest Home Loan interest rate with affordable tenor.

You should first know which factors influence the rate of interest of a Home Loan. Those are:

CIBIL Score–

You will be considered as an eligible applicant if you have a CIBIL score between 750 to 900. Generally, credit score ranges from 300 to 900, but you need to have a good credit score to get a loan sanction. If you have a good score, you can even avail a lower interest rate.

Chosen Home–

Your chosen home can also impact the interest rate. Financial institutions classify properties in different areas of a city under different risk levels. The properties type and areas can help you to enjoy a lower interest rate.

Loan Amount–

You need to make down payment 15%-20% from your savings, the rest amount you will take a loan from a bank. If the loan amount is standard, not too high or too low, the rate of interest is low.

To know about the other factors, read:

A Few Factors that Affect Home Loan Interest Rate