Owning a home is a kind of privilege in our country. Those who have their own homes don’t realize it, but those who don’t have constantly find ways to achieve your dream home. But buying a home isn’t easy in our country considering the hefty prices. To solve this problem of theirs, various banks and financial institutions provide the home loan facility to their customers. Home Loan interest rate all bank is one of the important things to consider before opting for a home loan facility.
A home loan is a facility by which an individual can get a loan amount at an affordable rate of interest for a period with flexible repayment options. In this article, we will be telling you all about the home loan interest rate all bank and how the interest rate of various banks and financial institutions depends on more than one factor. So if you are looking for a perfect home loan for you, this article would be a perfect read for you.
Factors that affect Home Loan Interest Rates All Bank:
There are various factors that define the home loan interest rate all bank for you. Before taking a home loan facility, it is important to look at these factors mentioned below and keep them in your mind.
CIBIL score: What is the CIBIL score? It is a three-digit representation of all your credit behavior. A good CIBIL score indicates that you’re good at handling the debt. Lenders always look for an applicant with a good credit score (above 750) to give the home loan facility. A good CIBIL score can let you take a home loan facility at a lower rate of interest as compared to a person with a bad credit score.
Location and Value of your property: A house at a location with better amenities and services automatically enhances the value of it in the lender’s eyes. And the lender finds it valuable, chances are that you’ll have to pay a lower rate of interest as properties at better locations are considered to be more stable as compared to the properties at locations with poor amenities.
Loan Term: If you opt for a home loan facility with a short period, lenders may give you the loan amount with a lower rate of interest but you should remember that you have to pay a higher EMI amount in the case of a shorter loan period.
Type of Interest Rate: It also depends on the type of interest rate you’re choosing as interest rate mainly is of two types - Fixed and Floating. The fixed rate of interest remains the same over your loan period while a floating rate of interest tends to change from time to time according to the prevailing MCLR (Marginal Cost of Lending Rate).
Loan Amount: Your interest rate can also be affected by the loan amount you’re opting for as banks can charge you a higher rate of interest if you decide to opt for a higher loan amount. So it’s advised to take the loan amount according to your repayment capability otherwise it can burn off all your budget while repaying it.