Property loans have become popular in India in recent times. This is because lending institutions offer endless benefits to them, such as no restriction on end usage. Moreover, they have lower interest rates compared to other types of loans since they are given against secured collateral.
However, there are ways of further reducing the property loan interest rate which will help borrowers complete the repayment process with ease. Read on to know more about them.
Ways to reduce property loan interest rates
Prospective borrowers can reduce the interest on their loans against property in the following ways-
- Disclose all income sources
A higher income reflects a higher loan repayment capacity. This is why applicants need to mention and provide proof of all their sources of earnings. This helps ease the loan approval process and also you can avail of lower loan against property interest rates.
- Make a larger down payment
When borrowers pay a large sum as a downpayment at the beginning, it reduces the payable amount throughout the tenor and at the end. This automatically reduces the repayment amount and the interest rate associated with it.
- Maintain a strong credit history
A credit score of 750 and above is considered a good score. This reflects good financial decisions and a strong credit history on the borrower’s part which makes lenders offer low-interest rates on a loan against property.
In case borrowers have a low credit score due to outstanding debts, etc., it is advisable to clear them off and improve their credit history before borrowers apply for a loan.
- Opt for a loan against property balance transfer
In case borrowers find lenders, who provide lower rates of interest on property loans than their current loan provider, they can choose to re-negotiate the interest rates. Else, they can opt for a property loan balance transfer.
This will allow them to pay their remaining loan amount with new lowered interest rates to a different lender.
After getting low-interest rates on property loans from a reputed lender, individuals can also apply for the same by following a simple procedure.
How to apply for a property loan?
Visit the website of the loan provider who offers the lowest interest rates and other additional perks and follow these steps for a hassle-free loan against property application:
Step 1: Navigate to the property loan application form online.
Step 2: Choose the loan type that you want and also your employment type.
Step 3: Input your details, such as name, date of birth, monthly income, etc., in their respective fields.
Step 4: You can complete the application process by clicking on ‘Submit’.
With the above-mentioned steps, eligible people can opt for a property loan. Moreover, they can also use a loan against property calculator to pre-determine the total interest amount and the EMIs.
Property loan EMI calculator
People can calculate the EMI of their secured loans, such as home loans and loans against property manually. However, this procedure is time-consuming and may also give inaccurate results since it is a complicated calculation.
This is why borrowers can use a loan against property EMI calculator from the lender’s website. This a free online tool that gives quick accurate results and also displays the EMI based on-
- Loan amount
- Rate of interest
- Tenor of loan
Several financial institutions in India extend pre-approved offers on secured loans, such as loans against property and home loans. Such offers help streamline loan disbursals. Borrowers can check these pre-approved offers from the lender’s website. For this, they have to provide their name and other details on the online portal.The property loan interest rate in India also varies among different lenders. Borrowers must carefully compare offers from different providers before choosing the most suitable offer.
