Want to apply for a home loan but don’t know which lender is going to be the best for you in terms of offering the lowest interest rates? Well, finding an ideal lender is surely one of the most tedious and difficult tasks. But not anymore as all you need to do is just simply read this article below:
Today, in this article, we are going to talk about HDFC home loan, one of the leading and reputed names in the HL industry. But before, we move on further, let’s just talk about the interest rate first.
Factors that Affect Home Loan Interest Rate
Income: If an applicant applies for a loan, the first and foremost factor that lenders take into the consideration while deciding the HDFC home loan interest rate is the income. Yes, the income of an applicant should be good enough so that he/she can easily repay the loan without any default. And, a good repayment capacity is no doubt one of the biggest factors that motivate the lenders to offer lower interest rates.
Credit Score: If you are someone whose credit score is good and have maintained the same over a long period of time, there are high chances that you might get the loan at competitive rates. Usually, in case of a home loan online, a score of 650 or above out of 900 is considered to be good enough in grabbing the best deal. A good score of an individual is an indicator that he/she has a good repayment track record and he/she is trustworthy enough as far as repayment of a loan is concerned. If your three-digit summary is good, it is definitely one of the biggest influencers that will make you enjoy the lowest interest rates.
Category of the Employer: Individuals working in a Fortune 500 or 100 company will have the privilege to bargain for the lowest home loan interest rates. If you work in a reputed company, it simply shows that you are going to have a better repayment capacity. Lenders usually prefer the applicants working in a reputed organization/firm as it comes with an assurance of easy and smooth loan repayment. Thus, this thing further helps the individual to negotiate for the attractive interest rate.
Relationship with a Lender: Applicants having a fruitful relationship with their existing lender can also bargain for the better rates. Yes, usually lenders prefer those applicants who are having the good terms with the lender as this thing gives them an extra edge. The lender after checking the track record of the applicant can decide on the rates as then it becomes easy for them to know the creditworthiness of an applicant.
Now after knowing all these factors above, it is important that you should also pay attention to your EMIs. Make sure that your monthly installments should be pocket-friendly so that you can easily repay your loan in the future. And, to be more precise about your monthly installments, you can use home loan EMI calculator HDFC , which is 24×7 available online.