It is very beneficial if you can get lowest home loan interest rates or reduce your home loan interest.
It will decrease your loan burden. Here are some tricks to help you avail a home loan and lower your home loan EMIs in India:
- Extending the Repayment Tenor: The benefit of extending the tenor is that it can lower your EMIs. Extending the period of repayment will surely help you to manage monthly expenses more smoothly but doing so means paying more interest during the extension. In such a case, the individual should make a decision only after considering his/her financial situation.
- Monitoring the CIBIL Score: In order to avail a home loan, an individual should have a CIBIL score of 750 or above. If your CIBIL is lower than the required score than you may improve it to build a strong credit history. A good CIBIL score can also help you to get better loan interest rates. In order to improve your CIBIL sore one should make sure to clear all the due/existing debts, repay credit card bills on time and rectify any error that may appear on the credit reports.
- Make High Down Payment: Your lender will fix the rate of interest on your home loan as per the borrowed principal amount. Paying a high down payment amount will allow you to go for a lower principal amount. The lower the principal amount the lower the rate of interest for home loan further leading to small house loan EMIs. You can also check how to reduce home loan interest for your principal amount.
- Increasing Yearly EMIs: You can also opt to increase the yearly EMIs so as to make pay off the outstanding amount as early as possible. The increase in yearly EMIs should be done only after taking your financial status into consideration.
Additional read: Here Is What You Can Do To Lower Your Home Loan EMI
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