Without a proper strategy and keeping your target in mind, you may get into a financial crisis in the future. If you make a wise decision and keep some things in mind, then the interest rate on your home loan can be reduced.

Home Loan Interest Rate: Follow these 7 tips to reduce the interest rate of home loan, you will save lakhs

How To Find Best Home Loan: In the festive season, many builders are giving great offers on booking a house. If you are also planning to buy a house, then it is important for you to keep many things in mind. When you finalize any house to buy, the biggest role in it is of your home loan and its interest rate. If the interest rate of home loan is low, you can save lakhs of rupees. Before getting the loan approved, keep in mind that your interest rate should be low. For this, you should keep some things in mind.

It is very important to be disciplined to repay the loan

According to Atul Monga, CEO and co-founder of BASIC Home Loan, it is very important for you to be disciplined to repay the home loan. Without proper strategy and keeping your target in mind, you may get trapped in financial crisis in the coming time. If you decide wisely and keep some things in mind, then the interest rate on your home loan can be reduced, let's know how?

Increase your credit score:

Atul Monga says that the interest rate at which a bank or NBFC will give you a home loan depends on your credit score. If you have a loan running, you can improve your credit score by paying EMIs on time and paying bills on time. If your credit score is above 750, you get its benefit in the form of loan interest rates.

Selection of loan tenure:

The tenure of your loan determines the calculation of your total interest. If you take a loan with a shorter tenure, you usually have to pay less interest. But your monthly installment will increase. But if the tenure is increased, the monthly installment will be reduced and the interest amount will increase. Therefore, select a shorter tenure for repayment of any loan.

Floating interest rate

While taking any loan, select floating interest rate. Floating interest rate keeps changing according to the fluctuations in the market. If the interest rates are low then you will get the benefit of this in home loan.

Compare the interest rates

of different banks. The advantage of this will be that you can finalize your loan with the bank or NBFC whose interest rate and processing fee is lower.

Increase the down payment

By increasing the down payment of the house, your loan amount will be reduced. Apart from this, by repaying a part of the loan principal before time, the outstanding amount will be reduced and you will have to pay less interest.

Transfer your home loan

If you have been taking your home loan for many years, you can try to transfer it to another bank. Banks offer low interest rates and zero processing fee on loan transfer.

While repaying your regular repayment home loan, you should ensure that you do not miss any installment. Missing even a single installment can lead to a penalty and can also affect your credit score.