How to reduce your Home Loan interest rate?

If you have a home of your own today, you should consider yourself extremely lucky. And why not? Having a home makes you and your loved ones enjoy the feeling of security. It’s something you can call your own with pride. Ever noticed that you are investing more than just money in your home? There’s hard work, savings, ample research and much more. But at the end of the day, it’s wonderful to know you have some place to go to and celebrate your special moments.

When one plans to buy a home and is opting to avail a home loan, it is always advisable to look for a bank or a financial institution that offers you the best. It is important to know the range of facilities being offered that suits your salary. A suitable home loan is the one which doesn’t disturb your lifestyle and monthly savings. That is why, it is imperative to opt for home loan eligibility calculator before applying for a home loan.

Applying for a home loan has got a lot easier with online applications and paperless documentations. It’s crucial to educate yourself on housing loan and everything that falls under it. One of those important things which will help you in the long run is – how to reduce your home loan interest rates. Below are few of the options which can give you an insight into reducing them.

  • Thorough Research

In the world of Internet where everything is available right at your fingertips, do a little research on which banks provide low interest rates. But don’t stop there. Compare interest rates of different financial institutions and banks, check for the hidden charges and then choose what suits your budget the best. 

  • Documents

From income tax proof to bank statements, authentic set of documents is of extreme importance. A loan application process is complete only after the submission of essential documents and when you fail to do so, you pay the penalty in form of a higher interest rate. Hence, keep your documents up-to-date. 

  • Pradhan Mantri Awas Yojana (PMAY) 

The introduction of Pradhan Mantri Awas Yojana (PMAY) fulfills the housing needs of the mid-income to economically weaker segments. The mission is to provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/beneficiaries by 2022. With the introduction of PMAY, the home buying process has become much more affordable. The scheme categorises the applicants into three core groups i.e. Middle Income Group (MIG), Lower Income Group (LIG) and Economically Weaker Sections (EWS). Each group is divided as per the annual income per annum for the household.

 

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