HOME LOAN INTEREST RATE

WHAT YOU SHOULD KNOW ABOUT YOUR HOME LOAN INTEREST RATE

One of the major decisions of taking a home loan is, based on the rate of interest banks or NBFCs are offering. Since home loans are usually of a bigger amount the rate of interest is one of the most vital aspects to know about before availing a home loan.

The interest rate varies from bank to bank. It may go high or low depending on the four aspects such as your profile, loan amount, tenure and most importantly your credit score. These four aspects pretty much define the interest rate of the housing loan.

Credit score pretty much defines the rate of interest applicable to your housing loan. If your credit score is high you might get a good rate of interest for your housing loan. At the same time if your credit report is somewhere below 600 to 700 your interest rate may tend to go higher. Hence Credit score is one of the key elements in defining your home loan interest rate.

Once your property is finalized, based on the purchase cost the property, one must find out which bank provide the best product (regular home loan , home saver, home loan overdraft) maximum loan amount , best rate of interest, tenure, and most importantly the processing fee required by the lender.