Know How to Get the Lowest Home Loan Interest Rate in Jaipur
The Pink City of India, Jaipur, has recently witnessed a spike in the development of various upscale residential properties. Therefore, the property rates in Jaipur have undergone a substantial year-on-year hike. The probable reasons behind such surge in prices can be due to well connectivity, rapid commercial growth and more. Besides, Jaipur is one of the thriving economic zones in the country.
Due to the soaring prices, buying a house in Jaipur can be a costly affair. It requires strategic planning before indulging in such a huge financial commitment. In this respect, home loan in Jaipur can come handy.
6 ways to reduce home loan interest rates
Before opting for a home loan in Jaipur, it is imperative to compare the interest rates offered by various lending institutions. Moreover, applicants should adopt a few practices to bring down the interest rate. Some of these are:
- Choose shorter tenor
A home loan tenor plays a vital role in deciding the total interest payable. While a long tenor confirms lower EMIs, the interest payable increases and vice versa. A prospective borrower can estimate repayment tenor on an online EMI calculator.
- Make regular prepayments
Home loan EMI payments include the interest charged on the principal and the borrowed amount. Applicants pay more towards the interest and less towards the principal during the first few years of repayment. So, if a borrower utilises his/her work bonus, salary hike and other additional income to make part prepayments, they can significantly bring down the interest payable over time.
- Opt for a home loan balance transfer facility
Borrowers can switch their home loan providers in case they find other lenders offering housing loan against affordable interests. However, one must go through the terms and conditions before applying for the facility.
- Revise EMI payouts yearly
Reputed lending institutions allow borrowers to revise EMIs every year. Therefore, if applicants get a salary hike or witness a consistent increment in income, they can increase the EMI amount to confirm lower interest rates.
- Make more down payment
Generally, financial organisations finance up to 75 to 90% of the total value of a property. The remaining amount has to be paid as a down payment. However, borrowers can contribute more to reduce the interest rate instead of paying the least as a down payment.
- Maintain impressive credit report and score
Lenders evaluate credit reports to determine applicants’ creditworthiness. This report states details about the repayment pattern of a borrower. In addition, credit score plays a crucial role in helping lenders decide the interest rate. Applicants with a credit score of 750 or more can negotiate the interest rate with lenders. If the score is below 750, one must look for ways to improve it.
Lenders levy penalties over interest if borrowers fail to pay EMIs on time. Therefore, devising these strategies will substantially help get the lowest interest rate on home loans.
Apart from saving on interest rates, a borrower can claim home loan tax benefit of up to Rs.1.5 lakh under section 80C and Rs.2 lakh under Section 24.
Housing loan eligibility criteria
Lenders have different eligibility criteria for self-employed and salaried individuals. Though the parameters vary with lenders, the common ones are-
For self-employed applicants:
- Applicants should have a stable source of income
- One needs to have at least three years of work experience
- Individuals must be a residing citizens of India
- The age limit is from 25 to 70 years
For salaried applicants:
- The present business vintage should be over 5 years
- Applicants must be a residing Indian citizen
- The age limit is from 23 to 62 years
Note that these eligibility parameters are indicative. Borrowers may ask applicants to meet additional requirements. On fulfilling these criteria, applicants should keep identity, address, income/business proof, bank statements, duly signed application form etc., and two passport size photographs ready to apply for a home loan in Jaipur hassle-free. Besides, applicants can either apply for the financial product online or visit the office per suitability.