“I got told so many times I needed a manager. For a long time I resisted, and I finally got one so I can pay my mortgage, and it helped me from becoming a homeless person.” - Cat Power
Owning a home is a key milestone in anyone’s life. And, when it comes to making such a big investment, you would naturally not like to settle for anything but the best. We liaise with a host of public and private sector banks to offer the best range of loan options available to you. We will hold your hand and walk down the whole hog with you – apply for the loan; fill out forms; negotiating the best terms and tenure to the extent possible (depending of course upon your past credit history) and see you through the sanction and disbursement stages of your loan; even assisting you in the rescheduling or loan swapping, if needed.
A Comparison Chart
Use this simple Creditfina instrument to compare Home Loan interest rates offered by various banks in India.
The interest rate on home loans or any other loan is dependent on the apex bank’s prime lending rate to the banks also known as the repo rate. On an individual level, Home Loan interest rates are dependent on the amount sought, loan tenure and the credit rating of the borrower. Thirdly, the Home Loan interest rate can vary from lender to lender. Lenders like SBI offers a higher rate of interest rate to its new customers compared to its existing customers.
Further, Housing Loan interest rates are of two kinds: fixed rate and floating. When there is a liquidity crunch in the market, the rate of interest tend to be higher, so banks are often willing to lock the loan amount at a fixed rate of interest that prevails throughout the loan tenure. But when the prevailing rate is lower, and banks see it rising in the cyclic order to things, it will either offer floating rate to its new customers (that adjusts with the repo rate) or charge a substantial higher (2-3%) fixed rate of interest, after factoring in the forecasted rise, down the line.
Every bank or lender follows a set of criteria in determining your ability to pay the loan throughout the tenure, before sanctioning you one. Their main interest is to be assured of a stable source of income, age and credit history, established over previous loans.
How To Apply
Follow this step-by-step procedure:
Download your credit report from the CIBIL site
Select your property before you apply for the loan
Be prepared to pay the processing fee
Read the fine print and remember that fixed rates are rarely fixed
Make a provision for higher down payment, that what you have been assured of – banks often haggle over these points, at the time of loan sanctioning
Buy a term insurance policy with your Home Loan to run through the loan tenure, by paying a single premium. Your family should inherit your property not your home loan
Equated Monthly Instalments (EMI)
The Home Loan EMI is set on the loan amount, the rate of interest and the loan tenure. Any one of these variables can inflate or deflate your EMI, so spend time in setting your EMI. Creditfina consultant would gladly help you make an informed decision here. Your EMI comprises an interest component and a principal component. A bank will first try to earn back its interest on the outstanding. As you proceed through the loan tenure, the interest component will decrease in favour of the principal component of your EMI.