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Having gone through the factors that can influence the home loan rate, you may feel there isn’t much you can do about them, yet, fortunately, you can. Given below are a few simple yet effective tips that can help decrease the EMI burden on your shoulders. The Borrower’s Profile In most cases, salaried employees are considered to be a safe bet as they have a stable income. Also, maintaining a good financial profile can help you in attracting competitive interest rates. If you are planning to go for a new home loan interest rate, this illustration will help you see its effect on the EMI that you would end up paying.
DHFL, being a leading housing finance provider, has a reputation for providing loans on generous terms with the minimum of documentation. The loan you take by keeping a self-owned property as collateral is called a Loan Against Property or a secured loan. The value of the property determines the amount of loan that can be sanctioned. The property will be owned by the lenders if you are unable to pay the loan.
Balance Transfer to Dewan Housing Finance Corporation
There is also a third option of mixed interest rates, where interest is levied at a fixed rate at the beginning and then converted into a floating rate after a set period. The Term of the Loan There is a direct relationship between the loan term and the home loan interest rate that you pay. Type of Interest While the fixed rates will not change, the floating rates would be influenced when the RBI brings in any modifications.
After using the calculator to estimate your EMI, you can quickly apply for a house loan online from the comfort of your own home using Piramal Finance's online home loans. The easiest way to secure the lowest possible Home Loan interest rate is to have a high CIBIL score. This is because a high score reflects a good credit history with various credit types in terms of your repayment track record and credit utilisation. Property value is another factor that affects Home Loan interest rates. The location of the property, surrounding infrastructure, age of the property, and amenities available are all considered to evaluate its worth.
Factors that can influence the Home Loan Rate
After selecting the relevant home loan type, the applicant is redirected to a new page which holds all the necessary information regarding the loan process. However, only income does not fulfill the eligibility criteria alone. The applicant, if he is salaried, must have experience and regular flow of salary of more than 2 years. For self – employed persons, their business stability and flow of income of more than 5 years.
Generally, floating interest rates are 1-2.5% lower than fixed interest rates. A floating Loan interest rate is variable and changes during the tenor based on market fluctuations and benchmark rates, which means your interest outflow keeps changing. Typically, lenders account for the change in the interest outflow by keeping the EMIs the same but changing the tenor to match the difference. It is best to opt for this type of Housing Loan interest rate when current rates are expected to increase.
Home Loan by Top Banks
DHFL currently offers home loans at a Retail Prime Lending Rate of 19.42 %. DHFL aims to offer the lowest interest rates for a home loan which, in the long run, makes a big difference in your overall budget. Attractive interest rates are not the only factor that people consider while going for a loan. People also take into account the process of repayment and various other clauses of significant importance. Easy Procedures When you want to apply home loan from Piramal Finance you simply need to fill in the application form and submit the listed documents.
At the time of loan disbursal, the amount of INR 2,500 is deducted from the loan amount in the form of processing fee. This is a one-time fee which also attracts applicable GST of 18%. Below is the table showing the interest rate, maximum loan amount and the tenure available for home loans at DHFL. You may also take note of the one-time processing fee which would attract an additional 18% GST. It is better to opt for floating interest on Home Loans when the existing interest rates are expected to fall.
Home Loan Rates by Top Banks
Whether all the necessary regulatory approvals have been taken. Absence of approvals is looked at as suppression of property records.
The rates of interest on home loans in India are usually calculated either on Monthly Reducing Balance or Yearly Reducing Balance. However, in some cases, Daily Reducing Basis may also be taken into account. From quantum of loan to the tenure, DHFL has a variety of options for all types of people. Every customer is important to DHFL and their offerings convey it. The interest rates are so flexible that they not only encourage people and eases them but also does not hurt their wallets. I applied for a home loan with Piramal and I got sanction for the required amount for 29 years under the Gruh Setu Home Loan.
Be it any event, eligibility comes first and is a deciding factor. Before going ahead with the loan application, it is highly advised that the applicant checks his eligibility to avoid any last-minute hassles or even disappointments at some times. Gone are the days when the work was done manually and took a long time.
Home Renovation Loans – Like all other things house too needs maintenance and sometimes even renovation. But renovation costs can hurt our pockets in a manner not imaginable. DHFL’s Home Renovation Loans help in redefining your home’s look. Apart from exciting rates of interest, DHFL also has a scheme called Home Loan Balance Transfer using which can be used to transfer an existing home loan at a lower interest rate.
Doing this can help enhance your eligibility, as the lender’s risk is reduced. Apart from this, interest rates are affected by the type of Home Loan you choose, be it for purchase, renovation, or construction. This Home Loan interest rate remains the same throughout the repayment tenor. However, lenders, at times, do add a reset date, which allows them to change the rate after a certain period to match market conditions.
Documentation pertaining to the property offered as collateral. If you are a growing business and often face cash flow issues, you can use our Loan Against Property to resolve these issues for good. Whether it’s to pay suppliers or salaries, stock inventory to meet growing demand or cover running expenses, our Loan Against Property is ideal for businesses of all sizes. The content of this site is copyright-protected and is the property of Piramal capital and housing limited. Mathematical errors, which are so common when doing calculations by hand, might be eliminated using an online calculator.
Dewan Housing Finance Corporation is slightly less stringent with documentation when compared to a state run institute. It is a good idea to establish whether you are eligible for a loan from DHFL and for how much, by using their eligibility calculator on the website. You can also use the EMI calculator to understand how much EMI will apply to you once you’ve taken the loan. Regardless of what the Eligibility calculator tells you, please consider carefully whether you can pay the EMI calculated promptly and consistently.
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