A Home Loan is a long-term commitment, like for 20 to 30 years. If the rate of interest of the loan is huge, then the loan will become costly fo you and you will have to bear the burden for the entire tenor. There are various reasons that may impact the rate of interest of the loan. Due to the hike in repo rate, Home Loan interest rates have started climbing.
However, here are some of the rare facts that you will hardly be aware about, that will actually help you to overcome the effects of rising interest rates and seal the best-possible deal.
Home Loans at Floating Interest Rates
Do you know that you can even avail a Home Loan at floating interest rates which keep on changing with the market dynamics. In case you take a Home Loan on a fixed rate, the rate of interest remains constant throughout the loan tenor. So, due to some reasons if the rates gets reduced, your rate of interest will be high as before. You will not be able to enjoy the reduced rate.
The floating interest rates are usually cheaper than fixed rates. Even if at certain point of time the floating rates go higher than the fixed rate, it’s not for the entire loan tenor, but for some period. Thus applying for a Home Loan at a floating rate will help you to save a lot.
Apply for Home Loans in NBFC
Nowadays, it is possible to apply for a Home Loan from any financial institution from banks and non-banking financial companies (NBFCs) as well. You will get a high loan amount coupled with flexible repayment tenor and competitive Home Loan interest rate in NBFC.
To know the other factors, read: