Home loan interest rates are at a 15-year low; practically all banks are giving lower home loan interest rates than the previous financial year.  Compare rates from different lenders to find the best home loan interest rates.  When comparing rates, always utilize a home loan EMI calculator to determine how much you’ll have to pay each month on your loan.  Though interest rates offered by banks might change at any time, the Union Bank of India is now offering its customers the lowest home loan interest rate of 6.40 percent per annum.  However, keep in mind that this rate is only available to women applying for a home loan.

How can you lower your home loan interest rate?

As home loan s are typically large loans, banks and HFCs conduct a thorough examination of the borrower’s credit history, repayment capacity, income, and detailed inspections of the property to be purchased.  Borrowers seeking a house loan should be aware of the variables that lenders consider while processing a loan application and their eligibility.  It’s worth noting that stringent eligibility requirements frequently accompany low-interest rates. Reduced interest on your home loan will help you quickly pay your EMIs.  There are various options available to you that will assist you in lowering your loan interest rate.

• Choose a shorter term — While the EMI on a long-term loan is lower, the total cost of the loan rises dramatically because you are paying interest for a longer length of time. As a result, consider shorter terms because the interest rate will drop dramatically.
• Make regular prepayments – During the first few years of your house loan, you will be paying more interest and less principal. As a result, making prepayments on your mortgage will eventually reduce your outstanding principal, lowering your interest rate.  Some banks, however, demand a fee for loan prepayments, especially on fixed-rate loans.
• Transfer your balance – Balance transfers should only be considered if you believe your present lender is charging you a greater interest rate than others. Most banks offer home loan balance transfer services, which allow you to move your loan account to a bank with a reduced interest rate.
• Your credit score is a number that represents your credit history. Those with a solid credit score have paid their EMIs and credit card bills in full and on time and have not been overly reliant on credit in the past.  Lenders will consider you for a house loan if your credit score from CIBIL and other bureaus is 750.  In addition, banks and HFCs are increasingly basing their home loan interest rates on applicants’ credit scores.  Many banks and HFCs provide home loans to applicants with higher credit scores at a cheaper interest rate since a high credit score demonstrates prudent credit behavior and financial discipline.

What are home loan interest rates?

You can use an EMI calculator to figure out how much home loan interest rates.  Input the loan amount, term, and rate of interest.  You’ll be able to see your EMI and a thorough breakdown of your repayment timeline via an amortization table once you’ve completed the calculation.  You can check how much interest you’ve paid on your loan by looking at the amortization table, which represents your repayment plan.