Few ways through which you can lower the interest rates for your home loans

The economy is on the roll and the cash flow throughout the country is on a high. However, the costs of properties and plots have increased greatly; thus, there are many middle-class citizens who are unable to purchase a property of their choice. Further, the interest rates charged by the traditional financiers and loan sharks are extremely high. But now there are a number of banks and NBFCs (non-banking financial companies) that have started providing home loans for the people at much lower interest rates; thus, they can easily make use of them and fulfill their dreams of purchasing a house.

The home loans given out by the banks and NBFCs (non-banking financial companies) can be used to not only purchase a new property or plot but also to renovate any of your existing ones. These loans can even be used by you for home extension purposes. However, the only thing that most of us are concerned about is the interest rate that we have to shell out from our pockets. Therefore, we have compiled a list of few factors that will help you to lower the interest rates of your apnapaisa home loans, and they are here as follows:

• Compare: The first thing that you should do to find the best housing loan at the lowest possible interest rates is to compare. There are a number of ways through which you can compare the interest rates- you can either visit the online websites of the financial institutions and make use of the EMI calculators or opt to check out the aggregator sites. An EMI calculator helps you to calculate and compare your interest rates on the basis of the principal borrowed amount and the repayment tenure that you opt for. This will help you to find the best housing loan for yourself at the lowest possible interest rates. A steady internet connection and an appropriate electronic device are all you need to make use of an EMI calculator.
• Credit score and history: The financial institutions scrutinize your credit score and history to determine your loan worthiness; thus, ensure that you make timely repayments on all your current as well as previous loans. A good credit score will help you to negotiate the interest rates for your home loans. A good credit score is anywhere more than 700- the CIBIL score range is from 300 to 900. Further, a good credit history is the reflection of your financial wellness.
• Age and job stability: The banks and NBFCs (non-banking financial companies) provide lower interest rates for the people who are in the prime of their age- i.e. 25 to 30 for most of the financial institutions. Also, if you have a good source of income and job stability then you can easily negotiate on the interest rates for home loans.
• Margin amount: The financial institutions never completely sponsor your purchase of property; they only sanction the loan amount up to 70%. You are the person who has to arrange the rest of the sum- this amount of money is termed as margin amount. The more amount of margin money that you invest, the lower your interest rates become.