{"id":355,"date":"2020-07-11T08:42:27","date_gmt":"2020-07-11T08:42:27","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=355"},"modified":"2020-07-11T08:42:27","modified_gmt":"2020-07-11T08:42:27","slug":"home-loan-interest-rates%ea%98%a1compare-rates-of-top-banks","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/home-loan-interest-rates%ea%98%a1compare-rates-of-top-banks\/","title":{"rendered":"Home Loan Interest Rates\ua621Compare Rates Of Top Banks"},"content":{"rendered":"\n
\"home<\/figure>\n\n\n\n

Home\nloan interest rates are the rates at which the lender Bank\/NBFCs lends you\nfunds as a loan to purchase your dream home. You need to pay back the borrowed\nfunds to the lender Bank\/NBFCs along with interest in equal instalments for an\nallotted period of loan tenure. The interest rates of the lenders can be fixed\nas well as floating, you can choose among the type of interest rate that is\nbest suitable for you. It is the primary factor for comparison and selection of\nthe best bank for home loan. <\/p>\n\n\n\n

The\nhome loan interest rate of the banks largely depends on the repo rates of RBI.\nRepo rate is a rate at which banks borrow from the RBI. With the fluctuations\nin the repo rates announced by RBI the lenders interest rates also fluctuate.\nAn increase in the repo rate will increase the lending rates of the lenders and\nvice-a-versa. And so the home loan becomes costlier when the housing loan\ninterest rate increases as it has a direct impact on your EMI outgo. When the\nRBI reduces the repo rates, the cost of funds of banks reduces which means\nbanks can advance loans to you at a lower cost. Banks determine their lending\nrates by adding margin percentage (banks percentage of profit) to repo rates.\nIn banking this margin percentage is referred to as SPREAD. The spread\npercentage differs from bank to bank and NBFC to NBFCs. It is this spread that\nmakes the interest rates competitive among the Banks\/NBFCs. Home loan interest\nrates of the lenders become cheaper or costlier with these spread margins of\nthe banks. The current housing loan interest rates have become cheaper. The\nrates have touched an all time low of 10 years to nearly 7% p.a. with a\nreduction in the repo rate to 4% due to the pandemic covid-19 impact on the economy. <\/p>\n\n\n\n

Click<\/strong><\/a> to\nsecure a low interest rate home loan. <\/strong><\/p>\n\n\n\n

The\ninterest rates can either be fixed or floating. Both have their own advantages\nand disadvantages. You have to wisely choose between the two that best suits\nyour needs. <\/p>\n\n\n\n

1) Fixed\nInterest Rates:<\/strong> As the name suggests, in fixed interest rates the interest\nrates offered to you remain fixed for the loan tenure or for the portion of the\nloan tenure as per the agreement by the lender. Which means you will not be\naffected by the market fluctuations on interest rates. Even if the lender\nincreases its lending rates you still pay the same EMI. And therefore to get\nthis security for the market fluctuations in the interest rates, generally the\nfixed rates are higher in comparison to the standard housing loan interest\nrates. The fixed tenure and the interest rate vary from bank to Bank\/NBFC. A fixed rate home loan is preferable when you know\nthere will be a significant increase in the interest rates in the near future. <\/p>\n\n\n\n

You\ncan anytime switch from fixed interest rate to floating interest rate after the\ncompletion of the fixed tenure with no additional cost. But if you wish to\nswitch during the fixed tenure it might cost you.<\/p>\n\n\n\n

  1. For switching interest rates with\nan existing lender – you pay a conversion cost or penalty amounting to 0.25%-1%\non the outstanding loan amount. The percentage charges vary between the\nlenders.<\/li>
  2. For switching interest rates by\nswitching the lender – you pay a foreclosure charge or penalty amounting to\n2%-5% on the outstanding loan amount as per the agreement of the lender. The\nforeclosure charges also vary between the lenders.<\/li><\/ol>\n\n\n\n

    2) Floating\nInterest Rates:<\/strong> In floating interest rates the interest rates offered to\nyou fluctuate according to the changes in lending rates of the lenders. The\nrepo rate cuts or hike, causes the lending rates to fall or increase which\naffects your home loan floating interest rate. Because of the fluctuations, it\nis also referred to as fluctuating interest rates in banking. There are no\npre-conditions for switching from floating interest rates to fixed rates. You\ncan even anytime during the tenure of the loan switch your lender to enjoy the\nbenefits of the lower interest rates on housing loan. The process of switching\nyour high interest rate home loan to another lender with low interest rate is\nreferred to as Refinancing in the banking industry. (CLICK\n<\/strong>to\nread more on refinancing<\/a>).There are no foreclosure charges\nin floating interest rates. You can also make part payment to your floating\ninterest rate home loan with nil prepayment charge. The floating rates are cheaper in comparison to fixed interest\nrates. <\/p>\n\n\n\n

    A floating interest rate is preferable when you assume the\ninterest rates to fall in the near future.<\/p>\n\n\n\n

    Click\nto switch your high interest rate home loan to 7%-7.50% @ zero processing\nfees <\/strong><\/a><\/p>\n\n\n\n

    Read\nto Know How To Deal With\nThe Increasing Interest Rates Of Housing Loans<\/strong><\/a><\/p>\n\n\n\n

    Home Loan Interest Rates Of The Top Banks<\/strong><\/p>\n\n\n\n
    \n Bank <\/strong>\n <\/td>\n Home Loan Rate Of Interest (Min)<\/strong>\n <\/td>\n Home Loan Rate Of Interest (Max)<\/strong>\n <\/td><\/tr>
    \n Canara\n Bank\n <\/td>\n 6.90% -7% (Woman Borrower)\n 7.25%\n <\/td>\n 9.35%\n <\/td><\/tr>
    \n ICICI\n Bank\n <\/td>\n 7.70%\n <\/td>\n 10%\n <\/td><\/tr>
    \n HDFC \n <\/td>\n 7.75%\n <\/td>\n 10%\n <\/td><\/tr>
    \n Piramal\n Housing\n <\/td>\n 8.65%\n <\/td>\n 10.50%\n <\/td><\/tr>
    \n Axis\n Bank\n <\/td>\n 7.75%\n <\/td>\n 10%\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n

    Note:\nThe interest rates mentioned above are subject to change anytime without any\nprior notice.<\/p>\n\n\n\n

    How To Get Low Interest Rates On Housing Loan <\/strong><\/p>\n\n\n\n

    All\nloan borrowers aspire to get the lowest interest rate for their home loan\nrequirements. There are various lenders such as banks-private sectors,\nnationalized banks, co-operative banks, etc and NBFCs who provide housing loans\nat attractive interest rates to their customers. The lenders are more inclined\nto fund you if you pose minimum risk for them. The risk assessment is primarily\ndependent on the factors such as your profile, industry, earnings, eligibility,\nage, repayment track, CIBIL score, etc. Your clear profile and CIBIL history\n& good earnings gives you an additional edge to negotiate on the interest\nrates. <\/p>\n\n\n\n

    No one\nlikes to get a housing loan with high interest rates, so here are some key\nstrategies to secure a low interest rate on a housing loan.<\/p>\n\n\n\n

    1) Add\nWoman Co-applicant To The Loan<\/strong><\/p>\n\n\n\n

    Lenders\nprovide special interest rates for woman loan-applicants. The home loan\ninterest rates for women as an applicant or as an co-applicant are 0.05% –\n0.15% lower than the standard home loan interest rates. It is not mandatory to\nadd an earning woman co-applicant to your loan application. But in order to get\nthe interest rate benefit, the woman co-applicant should also be the co-owner\nin the property. <\/p>\n\n\n\n

    Read\nmore on Housing Loan Benefits\nFor Women Borrower In India<\/strong><\/a>.<\/p>\n\n\n\n

    2) Maintain\nGood CIBIL Score And Repayment History<\/strong><\/p>\n\n\n\n

    The\ninterest rates that are offered to you largely depend on your CIBIL\u2019s credit\nscore. CIBIL is the authority providing credit ratings to you by keeping track of your every credit transaction and by maintaining\nall your credit records. CIBIL score has a significant role in the home loan industry.\nLenders ascertain the risk involved in funding your home loan by drawing your\ncredit history & CIBIL scores from CIBIL. CIBIL report reflects your\nrepayment track records, payment history,\noutstanding loan amounts, number of loans taken, types of loan taken, credit\nenquiries, loan settlement details, loan defaults, credit card overdue, etc.\nGood CIBIL score of 750 and above can earn you a low interest rate on a housing\nloan. Many lenders offer additional discounts on interest rates for your CIBIL\nscore above 800. For instance, Canara Bank offers a 6.90% rate of interest if\nyour CIBIL score is 800+. Good CIBIL is a reflection of your timely repayments\nof loan EMIs. Therefore to get the best home loan rate, it is important that\nyou maintain your credit score by ensuring timely\nrepayment of loan EMIs & by avoiding multiple loan applications to lenders.\nWhen multiple loan applications are made to more than 1 lender, lenders pull\nyour credit history and  each time they pull it gets noted on your report\nwhich are called as hard inquiries which remain on his credit reports for at\nleast two years. Having too many hard inquiries on the credit report marks a\nnegative effect to the credit score. Read to Know How Your Home Loan\nInquiry Impacts Your CIBIL Scores<\/strong><\/a><\/p>\n\n\n\n

    Additional Read: CIBIL And Its\nSignificance In Home Loan<\/strong><\/a><\/p>\n\n\n\n

    3) Make\nComparisons To Bang The Best Offer<\/strong><\/p>\n\n\n\n

    You\nmust study, evaluate and compare the interest rates of the different lenders,\nbefore making a final decision to apply with one. Compare the best bank for home loan<\/strong><\/a>.\nComparing will help you to shortlist a lender providing the best possible low\ninterest rates for housing loans. At times lenders also offer special festive\ndiscounts on home loan rates or limited period monthly\/quarterly offers for\ntheir customers. Although interest rate is the primary factor for comparison, the\nother factors that are to be considered include, funding, LTV, processing\ncharges, turnaround time, etc. <\/p>\n\n\n\n

    The simplest\nway to compare on a single platform is to visit Loanfasttrack<\/strong><\/a> on https:\/\/www.loanfasttrack.com\/home-loan\/apply-online-now.html<\/strong><\/a>. Get\nthe best offers from the top banks. Attractive interest rates and processing\nfees for home loan balance transfer in Mumbai.<\/p>\n\n\n\n

    4) Profile\nAnd Employment History<\/strong><\/p>\n\n\n\n

    Lenders\nclassify risk of funding by your profile, employment details and professional\ncredentials. Good and steady source of income, employment with a reputable\norganization, work experiences, designation, etc can gain you a low interest\nrate on the basis of the employer\u2019s reputation, mainly because the lender is\nassured of your financial means to make the timely payments of the loan. That\nis why the lenders demand your employment history for a minimum of two years,\nincluding one year with your current employer. A frequent job hopper, although\nmaking good per month earnings is uncertain to get a housing loan with low rate\nof interest. <\/p>\n\n\n\n

    Lenders\nhave their own list for negative industries, negative profiles and negative professions,\nfalling under which you might face rejections on your home loan applications.\nHowever with steady income, bank balances & assets with low or no\nliabilities, high CIBIL score you can still qualify for a housing loan\nirrespective of falling into the negative lists of the lender. The decision to\nfund is the lender\u2019s call and at times approvals are given with high processing\nfees or interest rates or both. The lesser the credit risk you pose to the\nlender, the better are your chances to get a housing loan with low interest\nrates.  <\/p>\n\n\n\n

    Let\nnot worry about getting a low interest rate home loan trouble you. Get the best\nonline user friendly platform- Loanfasttrack <\/strong><\/a>to\nsolve your worry. Compare, evaluate the  best bank for home loan\nin India<\/strong><\/a> by comparing the interest rates\nof top banks along with their processing fees, tenure, charges, funding, etc.\nat a single click. <\/p>\n\n\n\n

    Visit www.loanfasttrack.com<\/strong><\/a>. <\/p>\n\n\n\n

    Seek\nexpert advice on 9321020476<\/strong>. <\/p>\n\n\n\n

    You\ncan also email on info@loanfasttrack.com<\/strong><\/a>.  Loanfasttrack is\na Mumbai based loan provider company since 2015 offering loan\nservices in Mumbai on– housing loan in Mumbai<\/strong><\/a>, mortgage loan in Mumbai<\/strong><\/a>, personal loan in Mumbai<\/strong>,<\/a> business Loan in Mumbai<\/strong><\/a>, unsecured business loans<\/strong><\/a>,home loan transfer<\/strong><\/a>,\ntop-up loans, car loans<\/strong>,<\/a>\neducational loans and loan transfers<\/strong><\/a>. <\/p>\n\n\n\n

    It also helps you:<\/p>\n\n\n\n

    \u221a To find the best bank for home loan<\/strong><\/a><\/p>\n\n\n\n

    \u221a To get lowest home loan rates in Mumbai<\/strong><\/a><\/p>\n\n\n\n

    \u221a To get an instant loan in Mumbai<\/strong><\/a><\/p>\n\n\n\n

    \u221a To get instant personal loan in Mumbai<\/strong><\/a>\n& business loan in Mumbai<\/strong><\/a><\/p>\n\n\n\n

    \u221a To make you qualify for\nthe maximum loan against property\neligibility<\/strong><\/a><\/p>\n\n\n\n

    \u221a To get a low cost home loan balance transfer<\/strong><\/a><\/p>\n\n\n\n

    \u221a To get assured low interest\nrates for loan against property in\nMumbai<\/strong><\/a><\/p>\n\n\n\n

    Additional\nRead: <\/p>\n\n\n\n