The factors that determine your home loan interest rates in India
The Indian property market is going through many changes; the cost of properties has increased way beyond the reach of the common man. Thus, the middle-class citizens of India are finding it difficult to purchase a property of their choice. Therefore, at such times, people often opt for loans through financial institutions or loan sharks. The interest rates charged by the financial institutions such as banks and NBFCs (non-banking financial companies) are way lower than the ones given out by traditional financiers and loan sharks. There is also a discount of 0.05% on interest rates provided on a home loan for women borrowers and co-applicants. However, we still look for ways to lower the interest rates further in order to enjoy the least amount of premium; but most of us are still unaware as to the factors that determine these interest rates. Therefore, we have compiled a list of few factors that determine the apnapaisa home loan interest rates in India, and they are here as follows:
- Margin amount: If you think that a housing loan finances you completely then you are wrong; because there is an amount of money that you need to shell out from your own pocket. This amount of money that you need to pay in order to purchase a property is known as a margin amount. This margin amount determines your housing loan interest rates in India.
- Repayment tenure: The repayment of a home loan is done in the flexible form of EMIs (equated monthly installments); this helps you to plan out all your present and future repayments in advance. These EMIs are calculated on the basis of the principal amount that you borrow; repayment tenure opted by you and the interest rates charged by the financial institutions. Thus, the repayment tenure that you choose has a major impact on your interest rates; if you opt for a lower tenure than you will have to shell out a lesser amount of money in the form of interest rates.
- Repo rate: The banks and NBFCs lend you monetary assistance when you face financial crises; however, at times even these financial institutions face such situation. At such times, they opt to borrow loans from the RBI (reserve banks of India). The RBI charges interest rates in exchange of the financial help provided to the banks- this rate of interest is termed as the repo rate and it plays a major factor in determining your home loan interest rates in India.
- Reverse repo rate: Just like the times when financial institutions face monetary problems, even the RBI might stumble across such issues. At such times, the RBI borrows loan from the financial institutions and the banks charge interest rates for the monetary assistance provided. The interest rates charged by the banks and NBFCs (non-banking financial companies) are termed at reverse repo rates.
Hope this article will help you understand the factors that determine your housing loan interest rates in India. Good luck and all the best!
Want to avoid a loan burden? Consider doing personal loans comparison before applying for it!
Taking a loan will always be a cautious decision one can take as the person would be repaying its consequences in installments, every month! And especially when you consider the rate of interest charged on personal loan are moderately higher, it makes sense to a lot of loan aspirant to do personal loans comparison before choosing a loan product. It is good news for those financially helpless aspirants that many public and private banks and other Non-Bank Financial Companies (NBFC) that offer a wide range of personal loans at super-fast approval rate!
The personal loans comparison process is basically a filtration process, which takes out useless personal loan options out of the list and gives you the loan product that matters the most. And if you have the same intentions to save yourself from loan burden, you can follow below tips!
Little self-assessment first!
This tip is applicable for every type of loan products! So before you start you’re the apnapaisa personal loans comparison routine begin with estimating your loan eligibility and your borrowing capacity. Since personal loans are unsecured kind of loan, which means the maximum loan amount the loan lender would be sanctioning will be judged on the basis of monthly income your credit history. But most loan applicants quote inflated loan amount credibility-wise they were at favorable place. This should be avoided as the rate of interest is charged on the principle amount you borrow. So if you increase the prinicipal amount the interest payment would increase inversely.
Don’t make everything about the rate of interest!
This is one of the common mistakes loan aspirants make while doing personal loans comparison! Indeed the rate of interest on the personal loans is generally higher, but that doesn’t mean you should be making a big deal about it. There are other factors in the personal loan product like processing charges which can vary from one loan lender to another. The processing for availing a personal loan can go from 1% to 2% and course GST will also be charged on it. You should also go through other charges like foreclosure charges and also the documentation charges.
The power of credit score!
One can easily forget to mind the benefit of your credit score while doing personal loans comparison! In a simple term, your CIBIL score represent how much brownie points you’ve collected while repaying each loan you took and remain stable in paying the loan amount. The limit stretching ability of a good credit score mind entice you to over-quote the loan amount, but it can also give your ability to negotiate and get reduced rate of interest. And since the interest rates are moderate thanks to CIBIL score, it would be less of a burden to repay.
Choose a shorter tenure!
If possible of course! The availed options to choose tenure period on personal loans is up to 5 years and yet some applicants choose maximum tenure options availed to minimize the interest payment. We get applicants choose such longer tenures to make it comfortable to follow the installment cycle. But such applicant end up finding themselves under silent loan burden, as if you calculate how much interest amount you’ll be paying at the end of the tenure will give a shocker. The trick is to choose loan tenure as per your economic withstanding. Also mind the fact, the economic condition will eventually get better; hence you can ever choose a shorter tenure period to be free early from the loan burden!
Wished to save more time on loan approval, consider applying for a personal loan online!
As time progresses we can find everything we need is availed online and it is damn convenient. And it is the good thing that the finance sector decides to offer a way to apply for a personal loan online to get the same loan product for which they need to visit the banks earlier. The personal loans are ideal for the purpose of getting an urgent fund aid as the documentation is minimal and the processing time on such a loan product is rather quick compared to other loan option.
There are many public and private banks who are now offering personal loan online to their customer for the better convenience. And even Non-Bank Financial Companies (NBFC) who offers their range of personal loan products to cater new loan aspirants. Although the old ‘visiting the bank and applying for a loan’ process still works fine, but the following are some pointers that will further explain online loan application process makes more sense.
It saves time!
It could be little hard to take out the time and visit every loan lender in the market and discuss the loan product when you have a financial crisis knocking at your door. A person in such a stressful situation wouldn’t even consider opting for a personal loan and rather decide to sale his asset in possession manage funds. This is the reason why the finance sector decides to avail personal loan online so you could apply for a loan without even visiting the loan lender’s office. Whatever process you are supposed to follow the offline procedure you can do the same online.
Convenient too!
Most of the loan aspirants do the product research, evaluation and comparison between two or more personal loan products online. Some of the smart applicants use personal loan EMI calculator to get the appropriate loan quote as per their financial status is also available online. If most of the hard work an individual does to get the right loan product than it makes sense for loan lenders to offer an option to apply for apnapaisa personal loan online isn’t it?
You can browse through multiple options to make the decision right within an hour without stepping out of your comfort zone. This is especially convenient if you are stuck in a financial situation to manage expense and other duties. Many private banks and NBFCs offer seamless customer support through an online community or a helpline that sooth any queries you would have about the process or product.
Easy to follow process!
The idea of a loan lender is to make applying personal loan online process easy to masses, so whoever needs fund and is legible can approach without any stress. In a simple process, you need to click on the desired personal loan product, fill up the online loan application form with your details, upload the required documents to their website and forward the application for the loan approval! Some banks even offer document pick up service if you are not up for ‘document uploading’ option. There are many private banks and NBFCs who offer services of relationship manager who would guide you through the process.
Quicker loan disbursement!
Although it is not the sole purpose of it, personal loans are regarded as an urgent finance option, so the pace would matter the most. Since the actual loan application process is eased up the loan lender would take less time to process your loan proposal. This means the personal loan online process would sum up within a week or even in 3-4days, depending on the loan lender you choose.
Tips on being eligible to score lower personal loan interest rates before you apply for the loan!
The personal loans are indeed the best financial instrument one can expect at a desperate time. And there are many financial institutes like public and private banks and a list of Non-Bank Financial Companies (NBFC) that offer personal loan at a faster processing pace. But some people still feel reluctant to opt for a personal loan and the common reason behind it is interest rates. It makes sense as the personal loan interest rates go higher, the borrower needs to pay extra on the interest payments.
It is easy to believe you have to settle for the personal loan interest rates which are suggested by the loan lender and there is no scope one could find to lower it down! But there are some tips you can follow to logically make the interest rate favorable, irrespective of which loan lender you choose.
See what your eligibility says!
Your loan eligibility will fairly define and includes the options in personal loan interest rates, tenure options, and installment values. So it would matter how successful you would be in finding the cheapest interest, the loan lender would only sanction your loan application only if you pass the eligibility criteria. In the brighter light, being eligible get benefits of getting better interest rates or ability to stretch the borrowing limit. You can use a personal loan eligibility calculator with how much loan amount you could quote in the loan application.
Also, check your credibility!
Goodwill always pays off! The apnapaisa personal loan interest rates you are offered as based on your credit history and monthly income, whether you are a salaried person or self-employed one. Since personal loans are an unsecured loan and don’t expect an applicant to submit any collateral security. So for a loan lender, your financial credibility becomes an anchor point for a loan lender to approve the loan application. Indeed you would have more weight on your loan profile if you work in a reputed firm at the respectable position or operating your business at soother flow.
Power of Credit score!
It is quite a well-known fact that your credit score aka CIBIL score could positively say personal loan interest rates in your favor. Most loan lenders keep 750+ as a parameter to consider someone’s CIBIL score as legible to allow reduced interest rates and even let you quote extra loan amount in the application. Since personal loan lenders know most applicants apply for such loan as they are in financial situations, so some lenders might speed up processing. It would be better to keep you CIBIL score up and maintain so in case if you need a quick fund aid, you would get it at the quicker pace.
The benefit of market competition!
Since there are so many financial institutions offering suitable loan option, you are bound to find lower personal loan interest rates, if you search wisely. We have two teams; in one corner you have public banks and on the other end you have private banks and NBFCs. Now in order to cater to the larger audience, each type of loan lenders offers discounts and concessions which also include the possibility of lower interest rates!
The Personal loan interest rates might confuse you but these tips will help you find the best one!
The personal loans are indeed the best finance instrument one can choose at a desperate time! This type of loan product requires a minimum set of documents and takes less time to process, compared to other loan products. Although personal loan interest rates are comparatively higher and the tenure choices availed on such loan products are kept for a shorter period. This is the main reason why finance expert suggests paying close attention while quoting the loan amount so that applicant could avoid being under loan burden.
Finding the right personal loan interest rates might seem easy as one just have to compare two variable of loan products and that’s it. But the interest rates charged on the loan product you opt depends on other factors, which need to consider before you decide to opt for a loan. Just don’t take any pressure, take the time out for product research and follow the below tips.
Keep product search in the right direction;
It is good that most loan aspirants are keen about finding the best apnapaisa personal loan interest rates option in the market. They know choosing a right rate of interest on the loan product will avert them from being under burden as they start repaying the loan. Hence while looking for an ideal loan product it is wise to choose an interest rate that would be a boulder on your monthly expenditures. You can also find a loan lender that offers you best loan quote as per your economical withstanding. In such case loan, aggregating sites are more convenient and ideal to find the right personal loan options, as they would suggest options which are feasible for you.
Don’t overlook other components:
It is easy to get blinded with the lowest personal loan interest rates you could find on loan product. But there are other factors like processing fees, loan approval speed, quality of service offered before and after getting a loan and also credit benefit policy of the loan lender before you actually apply for a loan. It makes sense as lower interest rates might sooth the repayment flow but the above factors would affect your pocket and peace of mind.
Review your repayment strategy:
It might be hard to take a timeout in the difficult financial crisis event but it takes just some minutes to plan out how you are going to repay the total loan amount. A part of EMI you pay over the tenure also goes to pay for interest amount while repaying the principal amount. Hence even if you managed to dig out lowest personal loan interest rates, make sure you are well able to afford the EMIs. You can mind you increment, promotion or seasonal benefits in business in future to choose the right interest rate. But don’t make mistake by choosing a longer tenure to make repayment easy to manage as you might paying extra on interest payment for extended time.
Choose the right tool!
The task of evaluating and comparing two or more personal loan product could be a daunting task! It can be even difficult to have so many options in personal loan interest rates and other factors to check. While loan aggregating site can be helpful in giving righteous options but there are other tools you can use. The personal loan EMI calculator is an ideal tool which will assess your overall economic profile, how much loan amount you need and the preferred tenure to suggest you an ideal rate of interest. You can try a different combination of tenure option or a comfortable EMI point to get the favorable interest rates.
Looking for a personal loan? Dos and don’ts guide for the accurate personal loan comparison!
As most finance experts would suggest, personal loans are the ideal fund instrument that can be a saving grace at a time when you need an urgent financial aid. Although it might seem difficult to take out time to do the personal loan comparison when you have a financial crisis to deal with! But with the right tools like personal loan EMI and eligibility calculators, you can do the loan aggregating task in the shortest time possible.
Taking any type of loan is indeed a crucial decision to make and hence personal loan comparison is mandatory. And to make sure the time you invest in finding the ideal the personal loan, you can follow these dos and don’ts before you apply for it!
Don’t over quote it!
The limit for the loan amount will be decided as per your eligibility and financial capability to repay the loan. Some people who have considerably good credit score tend to quote extra loan amount than what is required! Although the loan lending party wouldn’t ask for what purpose and how much loan amount you want but the applicant should just stick to the managing expense. In such case, your greed can cause to pay extra interest amount while paying the principal amount. Hence it is wise to begin your apnapaisa personal loan comparison task by assessing your fund need to get a favorable personal loan product.
Some applicants also quote less loan amount than what their eligibility allow them to expect. Hence it would be better to use a personal loan eligibility calculator to assess your financial withstanding.
Mind the credit score!
We can’t blame you if you apply for a loan without a proper personal loan comparison if a financial crisis like medical bills doesn’t allow much time to take a sound financial decision! But most personal loan lending companies offer a reduction in the rate of interest if you have a good credit history to your title. If the loan amount suggested by the loan lender isn’t sufficient as per your urgent needs, with a good CIBIL score you can stretch the loan limit. Hence always keep your CIBIL score above 750 to be in the good candidate category.
Just focusing on getting the best deal!
It is safe to say most of our strategies for personal loan comparison are to find a loan product with the lowest rate of interest and an ample number of EMI options to choose. This strategy might seem beneficial but it can possibly blind you to read the fine print about the loan product. There are different types of charges you need to mind before applying for a personal loan. While processing fees can be charged around 1% to 2% with additional GST charges, one should also refer to foreclosure charges, default interest rates and other charges regarding documentation and stamp duty on CIBIL report.
Don’t pick a longer tenure period!
Some loan applicants intentionally look for loan options with longer tenure period while on the task of personal loan comparison! It might seem a legit strategy but there is a difference between a personal loan and a housing loan. In terms of personal loans, only the loan lender will be at the beneficial side as you will be paying more on interest amount, till the tenure period ends. Hence it would be wise to use a personal loan EMI calculator which will also help you choose the right tenure as per your economic profile.
The Personal loan interest rates might confuse you but these tips will help you find the best one!
The personal loans are indeed the best finance instrument one can choose at a desperate time! This type of loan product requires a minimum set of documents and takes less time to process, compared to other loan products. Although personal loan interest rates are comparatively higher and the tenure choices availed on such loan products are kept for a shorter period. This is the main reason why finance expert suggests paying close attention while quoting the loan amount so that applicant could avoid being under loan burden.
Finding the right personal loan interest rates might seem easy as one just have to compare two variable of loan products and that’s it. But the interest rates charged on the loan product you opt depends on other factors, which need to consider before you decide to opt for a loan. Just don’t take any pressure, take the time out for product research and follow the below tips.
Keep product search in the right direction;
It is good that most loan aspirants are keen about finding the best apnapaisa personal loan interest rates option in the market. They know choosing a right rate of interest on the loan product will avert them from being under burden as they start repaying the loan. Hence while looking for an ideal loan product it is wise to choose an interest rate that would be a boulder on your monthly expenditures. You can also find a loan lender that offers you best loan quote as per your economical withstanding. In such case loan, aggregating sites are more convenient and ideal to find the right personal loan options, as they would suggest options which are feasible for you.
Don’t overlook other components:
It is easy to get blinded with the lowest personal loan interest rates you could find on loan product. But there are other factors like processing fees, loan approval speed, quality of service offered before and after getting a loan and also credit benefit policy of the loan lender before you actually apply for a loan. It makes sense as lower interest rates might sooth the repayment flow but the above factors would affect your pocket and peace of mind.
Review your repayment strategy:
It might be hard to take a timeout in the difficult financial crisis event but it takes just some minutes to plan out how you are going to repay the total loan amount. A part of EMI you pay over the tenure also goes to pay for interest amount while repaying the principal amount. Hence even if you managed to dig out lowest personal loan interest rates, make sure you are well able to afford the EMIs. You can mind you increment, promotion or seasonal benefits in business in future to choose the right interest rate. But don’t make mistake by choosing a longer tenure to make repayment easy to manage as you might paying extra on interest payment for extended time.
Choose the right tool!
The task of evaluating and comparing two or more personal loan product could be a daunting task! It can be even difficult to have so many options in personal loan interest rates and other factors to check. While loan aggregating site can be helpful in giving righteous options but there are other tools you can use. The personal loan EMI calculator is an ideal tool which will assess your overall economic profile, how much loan amount you need and the preferred tenure to suggest you an ideal rate of interest. You can try a different combination of tenure option or a comfortable EMI point to get the favorable interest rates.
