Home loan interest rates fall: should you refinance?

 This holiday season, home purchasers will be overjoyed as banks and housing finance businesses continue to lower home loan rates. For a limited time, these cheaper rates will be available as a special holiday season promotion. Since the Reserve Bank of India (RBI) began relaxing monetary policy in the last quarter of 2020, most banks have been slowly lowering home loan rates.

Is now a good time to buy your first home because of these deals? What should existing borrowers do if they've taken out loans with increased interest rates?

Home loan rates have never been lower, and have plummeted even further as we approach the holiday season, contrary to projections at the start of 2021. The interest rate on house loans at Kotak Mahindra Bank was recently reduced by 15 basis points (1 basis point=1/100th) from 6.65 percent to 6.5 percent. The discounted rates will be in effect through November 8th. The rate at HDFC Bank has been lowered from 6.75 percent to 6.70 percent. The pricing will be in effect until the middle of November.



Home loan interest rates table

According to Adhil Shetty, CEO of BankBazaar.com, "more than 20 banks and home finance companies are currently making loans for less than 6.95 percent; several significant lenders are clustered in the 6.50-6.80 bracket." Many domestic top-tier commercial banks and NBFCs, including State Bank of India, Punjab National Bank, ICICI Bank, Axis Bank, LIC Housing Finance, and others, dropped rates in 2020, with more cuts planned in 2021.

"More than 20 banks and home finance companies are currently giving loans for less than 6.95 percent," says Adhil Shetty, CEO of BankBazaar.com. "Several large lenders are clustered around the 6.50-6.80 band." Many top-tier commercial banks and NBFCs in India, including the State Bank of India, Punjab National Bank, ICICI Bank, Axis Bank, LIC Housing Finance, and others, slashed rates in 2020, with more cuts predicted in 2021.

The Refinancing Option

You might start by contacting your current lender and requesting a rate reduction based on your existing connection and repayment history. In most circumstances, no documents are required to start the request. You can also do this on the internet.

If your lender refuses to consider your request, look for a different lender. However, search for post-disbursement services and the quality of digital customer support in addition to the low rate. Before committing to a new loan deal, make a note of the processing and administration expenses. Do the math first to see if you'll save money in the long run.

For Lowest Home Loan Rates

Consumers with excellent credit scores will be offered the best deals. While interest rates on home loans are at all-time lows, borrowers with poor credit may have to pay extra. According to Experian India's Managing Director, Neeraj Dhawan, a credit score of 700 or higher can help you get a good bargain. This will also allow you to apply for a loan through the finest banks; a poor credit/repayment history will result in a lower score, and the borrower will be ineligible for top home loan programmes as a result.

"In India, just 7% of home loans are approved for customers with credit ratings ranging from 300 to 700," adds Dhawan.

Conclusion

There's no need to be discouraged if your personal loan application is turned down. To boost your chances of loan approval, simply work on improving your credit report and following the methods outlined above. Once you've completed this checklist, you're ready to submit your personal loan application.To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Best Home Loan In India if you have any more.

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