Best Home Loan Interest rates: The Kovid-19 epidemic has caused great damage to the Indian economy. Due to this, the Reserve Bank of India has reduced the repo rate to increase the demand. After this, banks have also cut the interest rates of home loans linked to the repo rate. Some housing finance companies have also cut their rates so that they too remain competitive. In February 2019, the rate of interest of many bank MCLR linked home loans was 8.8 per cent per annum. At the same time, currently 13 banks and 4 housing finance companies are offering home loans at a rate of less than 7 percent per annum.
Keep in mind credit score
Therefore, this is a good opportunity for those who are thinking of buying a home. However, to make your decision, see that your credit score is above 750-800, so that you can get the best possible rates. According to the bank market, along with this, also ensure that you have the required margin money and steady income, so that the loan can be repaid on time.
Note that only banks offer floating rate home loans that are linked to external benchmarks such as repo rates, while loans from housing finance companies are linked to their prime lending rate. If you are considering taking a loan from the bank, then make sure that your credit store remains high for the entire duration of the loan as any fall may increase the risk and may require higher EMI.
HDFC Bank makes home loan cheaper, customers will get such relief on EMI
Also understand that the loan will be increased immediately with the repo, whenever the central bank decides to increase the policy rate. In such a situation, you will also want to pay a large part of your prepayment, as long as the rates remain low, so that you can become debt-free quickly.
Best Home Loan List
So, if you are keeping an eye on floating rate home loans, then let us know the interest rates of banks and housing finance companies in the country. Compare your options and choose according to need. Keep in mind that the appropriate interest rates for you will depend on your age, gender, credit score, loan size, property and the terms and conditions of the lender.
(Note: The date of 11 December 2020 has been taken from the data banks website. The data bank has been gathered by Bazaar.com.)
