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The Reserve Bank has increased the repo rate by 0.90% in the last two months, due to which loan rates have started increasing. Home loans, which were available at the rate of 6.40 - 6.80% till two months ago, have now reached 7.30 - 7.70%. In such a situation, whether the loan is already running or you are about to take a new loan, the interest will increase in both the cases. So what can be done to lower the rates while purchasing a 3BHK flat in Bhopal?
If your loan is going on, then know from your bank or lending institution how the rising rate can be curbed. Many non-banking institutions give you a small processing fee, which reduces your interest. If you are taking a new loan, then first check your pre-approved offers. SBI Home Loan rates are an example worth comparing.
In the case of refinancing, many banks may offer a loan at a rate lower than their lowest advertised rate. Often in refinance or balance transfer, banks offer discount rates to attract new customers. For buyers of 3BHK apartments in Bhopal, refinancing can save a big amount over time.
A good credit score is essential for getting cheap loans. Credit history is important for credit score. To avoid higher rates, try to keep your score above 750. This can significantly reduce the EMI burden on your 3BHK home loan.
Many lenders offer their lowest rates to women. Women can take advantage of this by being the primary borrower. Men can also take a joint loan with the women of their family. This strategy can help reduce the overall interest on your home loan.
The smaller the home loan amount, the lower the interest rate usually is. For example, a private bank charges the lowest rate for loans up to Rs 30 lakh, and a higher rate for larger loans. If you are buying a premium 3BHK in Bhopal, try to increase your down payment to reduce the final loan amount.
