Everyone wants to avail of the lower current home loan interest rate to repay reduced EMIs. However, not everyone has the idea about availing of the lowest home loan interest rate in India.
On that note, it would be good to know about a few tips that can help you lower your current home loan interest rate. Read on!
Here’s how you can enjoy a reduced current home loan interest rate
1. Ensure your CIBIL score is higher
If you have a higher credit score, you can get the housing loan interest rate at a lower rate. Anyone having a CIBIL score of 750 or more is a signal that a borrower may be able to repay the loan fast without defaults. Hence, you should maintain a robust credit score to avail of a lower home loan interest rate.
2. Increase your down payment amount
No lender is going to sanction the total amount of the home that you want to buy. The maximum loan amount that can be approved by a lender is 80-85%. You will have to arrange 15-20% on your own. It is known as the down payment. The higher is your down payment; the lower will be the borrowable amount. Hence, your overall home loan interest rate charges will also be reduced.
3. Try going for a home loan balance transfer
If you have an active housing loan account and still paying higher interest charges, you don’t have to suffer. You can transfer the loan account to a lender offering a reduced rate. It is called the home loan balance transfer. It may also let you avail of a higher top up loan and use the amount for usages without any restrictions.
If you can consider these elements, you will be able to avail of the lower current home loan interest rate in India.
Additional Read: Comparing Home Loan Interest Rates 2021 in India
