A home loan comes with a
lower rate of interest because it is a secured debt. But because it also
carries a longer tenor, home loan interest paid is higher.
It means housing loan
borrowers are required to pay higher interest rate charges over a longer tenor.
But, if you are able to
implement a few tips, you can manage reduced housing loan interest rate.
Read on!
1. Maintain a robust CIBIL score
If your credit score is higher, it means that you have managed to pay active and earlier loan and credit cards dues on time. And that makes you a risk-free borrower. In this case, lenders may reward you with a faster home loan approval at a lower rate. You should ensure to maintain a CIBIL score of 750 or more.
2. Go for a smaller tenor
Another way to enjoy a
lower home loan interest rate is going for a smaller tenor. Opting for a short
tenor may increase your EMI amount. But you will be able to save big on the
all-important extra expense like the home loan interest rate charge.
Read Also: Advantages of a Home Loan
3. Make a large down payment
Lenders will only
sanction 80-90% of the value of the property that you want to buy. The
remaining needs to be arranged on your own. It is known as the down payment.
The higher it is; the better. It is because your total borrowable amount will
be less, leading to the payment of lower home loan interest rate charges.
Additional Read: Make your home Loan Planning Easier with a Home Loan Calculator
Considering these
crucial tips can help you enjoy a lower home loan interest rate easily.
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