How to Find the best Housing Loan Interest Rate in India?

Home loans in India become an expensive affair due to several additional charges associated and involve acquiring a large sum to meet housing needs. In that case, choosing the right combination of repayment tenor and interest rate becomes necessary to make the EMIs affordable. When it comes to housing loan interest rate, there are certain tips borrowers can follow to find the best one and handle their finances better.

Ways to get the best housing loan interest rate

You might come across plenty of lenders who will be offering you different repayment schedules, and you need to choose one that matches both your repayment capacity and monetary requirements. To make the process of finding affordable home loan rates easier, here are some tips to follow:

• Submit a considerable amount as a down payment 

It is mainly the partial amount of the concerned property and should be paid by the borrower as the lending institution does not bear the entire cost of the property. It helps in reducing the borrowable amount, further lowering the housing loan rate. 

• Opt for housing loan balance transfer

Borrowers generally switch their home loan to another lender, offering a lower interest rate to make their overall repayment process affordable. However, you need to be careful about the time you are choosing to refinance your housing loan. It is ideal to be done after RBI announces a repo rate cut that is when housing loan interest rates come down. 

Apart from these, making prepayments is another great way to find the best home loan interest rate; however, look out for penalty charges before going ahead. 

Read Also: Know how to Avail the Lowest Home Loan Interest Rate