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Home loan interest rate depends on these things, keep them in mind before applying

Home Loan: After getting a home loan, repaying it is a big question. Many times it is seen that one person gets a home loan at a lower rate of interest while another person gets a home loan at a higher rate of interest. The actual home loan interest rate depends on several factors including the loan amount and CIBIL score. Know what are the ways to be adopted so that the interest rate of home loan can be reduced.

Cheap loan will provide good credit score

  • The credit score of an individual is revealed by the repayment history, credit utilization ratio, existing loans and timely payment of bills.
  • Credit score plays an important role in deciding how easily you will get a home loan or at what rate of interest.
  • If your credit score is good then you will easily get loan at low interest rate.

Women borrowers get cheap loans

  • Try to take home loan in the name of woman as women get cheaper home loan than men.
  • Women get 5 basis point cheaper home loan.
  • If you want, you can take a joint home loan with a woman in the family. Loan will be available at even lower interest.

Don’t take more loan if you don’t need it

  • The loan amount also plays a role in deciding the interest rate.
  • The interest rate of your loan depends on your loan amount.
  • The higher the loan amount, the higher will be the interest rate.
  • Loan should be taken only as much as you need.

age and job

  • Banks give quick and low interest loans to salaried salaried people. They see a quick possibility of getting the money back here.
  • Banks are hesitant to give interest to older people or take loans at higher interest rates.

Take loan from your bank

  • It is right to take a loan from the bank where you have your account.
  • Banks provide loans to their regular customers at low interest and easily.

Take care of interest plan

  • Banks offer 3 types of interest plans – fixed interest, floating interest and flexi interest.
  • All these three interest plans also affect the interest rate.
  • In a fixed home loan plan, a home loan is available from the bank at a fixed rate.
  • In a floating home loan plan, the interest is linked to the base rate of the bank. A change in the base rate causes the interest rate to increase or decrease.
  • Flexi home loan plan is a combination of floating and fixed plans. In this, the customer can get his plan fixed or floating in the middle of the loan tenure as per his need.
  • You can also take the advice of an expert before choosing an interest plan.

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Shivam Bangwal

Shivam Bangwal is a young entrepreneur who hails from Uttarakhand. Shivam is a professional full time Digital Marketing and PR expert with a post graduation degree of Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Branding Panther and Digital Leader.

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