2019-08-16T10:52:29
How to Get Best Home Loan Rates in India
It has never been easier to get a housing loan, as today you can do online loan comparison based on interest rates, other loan terms and conditions of all banks before choosing the right loan offer.
Step 1 : Check loan EMI and calculate eligibility
As you decide to take a home loan, always estimate your loan amount eligibility to know the loan amount you will be eligible for and can apply for. Also calculate the monthly EMI that you can comfortably service given your net take home salary and other existing fixed obligations including rent and EMIs on other existing loans, if any. Your house loan eligibility is calculated based on your age, net income, existing obligations, property type, LTV ratio and other factors. EMI is dependent on the loan amount, interest rate and tenure. Once you understand your minimum loan requirement, your eligibility and monthly EMI you can comfortably service, shortlist the banks which offer you maximum loan amount to meet your requirements.
Home Loan Eligibility Calculator
Home Loan EMI Calculator
Step 2 : Check property approval status and legal documents
If you are buying a property from builder, then check for the banks which have approved the projects you have shortlisted. For resale property, check the approved map plans and ensure that all property registration papers for the complete chain from the first owner to current owner are in place. Shortlist the banks which lend on your chosen property.
Step 3 : Decide on type of home loan interest rate offers
As you narrow down the list of banks in Step 2 and 3, you need to conduct an interest rate on home loan comparison of the loan offers of various banks. Some of the interest rate offers that needs to be checked are:
Choice between fixed and floating rates - Fixed rates come at a slightly higher rate of interest compared to floating rate loans and interest rate remains constant during the tenure of home loan. In floating rate loan, interest rates are reset at periodic intervals in response to changes in MCLR and PLR rates of banks or NBFCs. Majority of housing loans in India today are floating rate loans as it allows the borrowers to get home loan interest rate in line with the current interest rates.
Decide if you need a home saver loan - This is a loan with overdraft facility which allows you to deposit surplus amount in your home loan overdraft account as and when available, allowing you to reduce your overall interest amount. This loan is highly recommended for salaried individuals with high bonuses and self employed business which is seasonal and has fluctuating cash flows. The interest rates on overdraft loan is slightly higher than that of a regular housing loan interest rate.
You can also evaluate a mortgage guarantee house loan as it covers any default risk and allows the lender to give you loan at low rate of interest. You will however need to pay a mortgage guarantee fee to the bank.
Check and compare the current home loan interest rates of the banks on various types of loan products and take an informed decision. house loan.
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