Acquiring home loans nowadays has become very convenient for prospective buyers. This is because most of the prevailing lenders have eased their loan acquisition processes. Such relaxation in their stringent policies has encouraged more people to seek home loans to buy their dream property.
HFCs operating across cities like Chennai offer such high-valued loans at competitive rates to encourage borrowing. Nevertheless, the best terms are often reserved for individuals with the highest eligibility. To avail a home loan in Chennai at favourable terms, potential borrowers can follow certain practices.
Following are some aspects to maintain when looking for a low interest housing loan-
- Compare the interest rates offered by banks and financial institutions
Several financial institutions operate across Chennai. A borrower must analyse the interest rates on offer and choose the most suitable lending institution before applying for a home loan in Chennai.
This will help you to determine which institution is offering the best interest rate on their home loans. Moreover, you would also have the option to select from a wide range of choices and choose the institution that best suits your budget.
- Maintain a good CIBIL score
Another essential criterion to acquire the lowest interest on home loan is having a good CIBIL score. A CIBIL score is a numerical representation of your creditworthiness as a borrower. It also assures the lender regarding your trustworthiness as a borrower and shows the latter’s loan repayment capacity.
This score ranges from 300 to 900, and the minimum score needed to acquire a home loan is 700 or higher. Individuals looking for the best scores would benefit significantly by keeping this score as high as possible. If your CIBIL is 800 or more, most lenders would be ready to provide you housing credit at the most favourable terms. However, you must also meet other eligibility factors. Use a home loan eligibility calculator to assess the same.
- Make use of a home loan EMI calculator
The most convenient way to calculate interest rates is by using a home loan EMI calculator. Nowadays, every HFC has an online EMI calculator. And, knowing the precise liabilities before applying for a loan will help you arrange funds accordingly. It would also help you to know the exact interest amount and help you choose an institution with the lowest interest rate.
- Check for any hidden charges or conditions from your chosen lender
Financial institutions may levy certain charges, which are not apparent at the first glance. They might also have some unwritten terms and conditions that affect a borrower’s interest burden. So, before you plunge into taking up a home loan in Chennai, make sure to go through all such terms and conditions thoroughly. Failure to do so will result in borrowers having to pay more than what they bargained for, thereby causing excess financial stress.
- Maintain a healthy relationship with the lender
A very common but important thing to consider when it comes to acquiring loans at the best rates is your relationship with the chosen lending institution. After deciding which financial institution provides you with the best home loan interest rate, open an account with them one year before loan application.
Prior history with a financial institution can help a borrower initiate a negotiation, which can lead to lowered rates. Personal relations often give you extra mileage in acquiring low-interest home loans.
Therefore, these are the methods following which you might gain the lowest interest for a home loan in Chennai.
To simplify and accelerate the loan application process, financial institutions often come up with certain pre-approved offers. These offers are available on various financial products like home loans, loan against properties, etc. So check your pre-approved offers today by providing a few details like your name and contact information.