3 Methods to a Better Deal on a Home Loan in Kolkata
Congratulations on your decision to purchase your own dream home in Kolkata, the city of joy! Kolkata is a vibrant city and a fusion of old culture and modernism with amazing cultural, art and cuisine history.
Having a house these days is a big achievement! And if you have decided that you should get a house, you also had tried to get a Home Loan in Kolkata if you don’t have enough surplus cash in hand.
If you are willing to get a Home Loan in Kolkata, the first thing that you should ensure is to avail a better deal on interest rates.
When you lap up a low Home Loan interest rate, you end up saving enough money during the loan tenor to divert it to your other needs and wants.
Let’s quickly provide you with 3 methods or steps that will help you avail a reasonable deal on the interest rate.
Method 1: Watch out the Home Loan interest rate
One of the easiest ways to get a lower interest rate is to wait until the loans across all boards are at low levels. Festivals are the best time to check out for the low-interest rate. Lenders, during these times, lower their Home Loan interest rate to attract a larger chunk of borrowers. However, if you are going to avail a Home Loan during festivals, make sure to check on later if it’s still the same or the lenders have recalled it to the normal level.
Another strategy that you can implement is comparing the Home Loan interest rates of all creditors on a third-party website. Yes, many third-party websites publish daily or weekly interest rate elements on their platform which you can compare to take a call. Finalize a lender that suits your affordability.
If you don’t know how much amount you could afford monthly while repaying the Home Loan, you can utilize a Home Loan EMI calculator. How does a Home Loan EMI calculator works? Well, you just need to enter a loan amount and tenor, it will come up with the exact EMI amount along with the rate of interest. When you know what EMI amount you can repay, you would be able to apply to a lender that will suit your repaying capacity easily.
Step 2: Cut down your Home Loan interest rate with more down payments
Generally, lenders demand a down payment of around 5-20% of the loan capital while processing your Home Loan application. Try to put down as much amount as you can so that you don’t have to pay an extra amount for the remainder of the loan amount.
The less money you pay up front for your Home Loan in Kolkata or anywhere, the more interest you will pay throughout the tenor of the housing loan. It would be advisable to put 20% down payment to avail a better deal on the remaining Home Loan capital.
Step 3: Improve your CIBIL score
Another step that will help you avail a low Home Loan interest rate is by improving your CIBIL or credit score. If you have a healthy CIBIL score of more than 750, you can negotiate with your lender based on your creditworthiness to offer you a better deal.
If you don’t have a healthy credit score, you could improve it by paying your credit card bills on time, existing loan EMIs and more.
The Bottom Line
Try to incorporate the above methods so that you can avail a decent offer on the interest rate for your Home Loan in Kolkata. Happy Home Loan application!