Settling in a new city can be a challenging yet exciting prospect. It includes hunting for the right property in a favorable location. In Lucknow, there are options like Gomti Nagar, Indira Nagar, Hazratganj, Mahanagar and Jankipuram- these are some sought after places that are great to buy a residential property. Buying a home means investing a significant amount that can adversely affect your savings if not planned well. This is where a Home Loan will come into play- these debt instruments are provided by financial institutions like banks and Non-Banking Financial Companies (NBFCs) and are used to finance 70 to 80% of the property’s price. The remaining 20 to 30% is to be paid by the home buyer and is called the down payment.
The key factors that need to be kept in mind when availing a Home Loan in Lucknow or elsewhere for that matter are- the rate of interest, tenure of repayment and the amount to be borrowed. The rate of interest, which determines the cost of borrowing is determined by the bank or NBFC from which the loan is to be availed. As this factor is not really in the hands of the borrower, there are only a handful of things that can be done to reduce this cost of borrowing.
So, here are a few things the loan seeker can implement to avail a Home Loan at a low rate of interest from a lender in Lucknow:
Credit or CIBIL Score
Your credit or CIBIL score, a statistical figure, representing your credit worthiness determines how likely it is for you to make timely payments on your availed debts. Moreover, this score affects your eligibility for the loan and the rate of interest to be charged for your case. A score of 750 or above increases your chances of availing the Home Loan at a low rate of interest.
Paying a Higher Down Payment
With a larger down payment being paid by the home buyer, the amount to be borrowed becomes less. Now, the principal borrowed and the interest rate share a linear relation- it has been observed that when the principal amount is less, the rate of interest also becomes less.
Negotiating with the Lender
Not as foolproof as the previous method, but definitely worth a try is negotiating with your chosen lender. If you are a regular customer of a bank or NBFC, this option can be effective in reducing the rate of interest.
By following the the above mentioned simple steps you get reduced home loan interest rate in Lucknow and make your loan and its repayment easy for your pocket.
The key factors that need to be kept in mind when availing a Home Loan in Lucknow or elsewhere for that matter are- the rate of interest, tenure of repayment and the amount to be borrowed. The rate of interest, which determines the cost of borrowing is determined by the bank or NBFC from which the loan is to be availed. As this factor is not really in the hands of the borrower, there are only a handful of things that can be done to reduce this cost of borrowing.
Credit or CIBIL Score
Your credit or CIBIL score, a statistical figure, representing your credit worthiness determines how likely it is for you to make timely payments on your availed debts. Moreover, this score affects your eligibility for the loan and the rate of interest to be charged for your case. A score of 750 or above increases your chances of availing the Home Loan at a low rate of interest.
Paying a Higher Down Payment
With a larger down payment being paid by the home buyer, the amount to be borrowed becomes less. Now, the principal borrowed and the interest rate share a linear relation- it has been observed that when the principal amount is less, the rate of interest also becomes less.
Negotiating with the Lender
Not as foolproof as the previous method, but definitely worth a try is negotiating with your chosen lender. If you are a regular customer of a bank or NBFC, this option can be effective in reducing the rate of interest.
By following the the above mentioned simple steps you get reduced home loan interest rate in Lucknow and make your loan and its repayment easy for your pocket.
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