Currently, the repo rate by the Reserve Bank of India stands at 5.90 percent, after multiple hikes announced this year. Banks have always followed every hike and have increased their interest rates on both deposits and borrowings each time. So, currently, the interest rates on loans are touching the sky and if you are interested in availing of a housing loan when these hiked rates are in effect, then you will have to bear the burden. But what if you can get home loans at a cheaper rate?
Home Loans And Surging Bank Interest Rates
Very recently, the RBI hiked its key lending rates by 50 bps to 5.90 percent. And following its footsteps major lenders like SBI, Punjab National Bank, Bank of Baroda, and ICICI Bank, revised their interest rates soon after that.
These moves from major banks resulted in making loans and EMIs or equated monthly installments costlier.
So, now the people who are looking for personal loans, home loans, vehicle loans, and more are going to face hiked interest rates by major lenders which include Non-Banking Financial Institutions or NBFCs.
Here’s How To Get Home Loans On Low Cost Amid Increasing Interest Rates:
Check For Festive Offers
Every year, during major festive seasons, major Banks provide festival discounts on different types of loans, of which you can take advantage and avail of a home loan.
Moreover, few banks also provide discounts on processing fees or don’t charge any for the best customer experience. So, getting these benefits at the right time will make your home loans purchase less expensive.
With A High Credit Score
Credit score or CIBIL score denotes a person’s creditworthiness to lenders. The most favored credit bureau in India is CIBIL from where the lenders take a hard query on a loan application, about their credit activities and then decide on their creditworthiness.
If your loan availing eligibility is high, which means you have a high credit score then the banks may offer you home loans at low-interest rates. It’s cheaper in comparison to a person applying for a loan with a low credit score.
Also read:
Why My CIBIL Is Falling Even If I Am Paying On Time?
Comparing Multiple Lenders (Comparing Multiples But Applying With One)
Today some several major commercial banks and NBFCs provide loans at low-interest rates in comparison to the major ones. And you should compare the offers of all of them to get the best home loan deal. Do not rush to get a loan before comparing all the odds and stats. Also, their offered rates will depend upon your profession and credit history.
