How To Get The Best Home Loan Interest Rate Deal From Banks And NBFCs?

No purchase beats a home loan purchase as it is the most capital intensive decision that a person takes in his entire. Building purchasing a home is not a joke. Even after a loan being sanctioned, all your savings get exhausted. So, it is important to negotiate the best home loan interest rate while you are taking a home loan from banks or NBFCs (Non-Banking Financial Companies). A low interest rate deal doesn’t put pressure on Equated Monthly Payment (EMI) that you have to make. So, what are the ways in which how can you close the lowest home loan interest rate deal with the lender, let’s have a look:

Credit Score: Generally, people have this notion that credit scores don’t matter much in the case of home loans. But, what they really miss out is that “it is not much relevant as it in the case of personal loans”. Having a good credit score can help you the lowest home loan interest deal. By good, I mean, a score of 750 can put you in a bargaining position with the banks.

Property Location: If your buying or constructing a house in a location which is posh or semi-posh, like South Delhi, chances are that the lender won’t hesitate in giving you the lowest possible interest rate. People with properties under well managed gated societies can certainly get a low interest rate deal on home loans.

Earlier Relationship with Lenders: Say, if you have a bank account/credit card/personal loan or a home loan in the past from a bank, chances are the new home loan that’ll be provided to you will be for less. This will only happen if you have serviced your debts well - timely payment of EMIs. A relationship of trust gets built if you have a good credit track record and this helps you seize a low interest deal.

Which NBFC should you go to for the best home loan interest rate deal?

If SBI provides the lowest interest rate on home loans, Bajaj Finance provides the lowest in the NBFC category. Bajaj home loan interest rate starts from 8.55% per annum, which is certainly one of the lowest when you compare it with other banks or NBFCs. And the maximum rate offered by them can go upto 20.90% (in case of floating rate) and 11.15% (in the case of fixed rate). Yes, it gives you the option to choose between fixed rate and floating rate. Bajaj home loan interest rate offered to self employed borrowers are higher than salaried borrowers.

What is the Bajaj home loan interest rate offered to Salaried and Self-Employed Borrowers?

The reason why salaried borrowers (especially working with top and stable organisations) are offered a slick deal with respect to home loan interest rate is because the default risk associated with them is less. The risk of self employed individuals is more in comparison to self employed borrowers because they can go out of business at any points. Thus, Bajaj home loan interest rate offered to them is higher.

Interest rate offered by Bajaj Finserv to salaried borrowers is 9.05% to 10.30%. During an offer period, the interest rate given to salaried borrowers is 8.55% per annum. On the other hand, self-employed borrowers, are offered the home loan at 9.35% to 11.15%.


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