You Should Know How to Deal With Hiked Home Loan Interest Rates With Calm

Bydiljeet singh

While home loan interest rates are currently at their lowest in the last 15 years, nobody can predict the future. Therefore, prospective borrowers should not only compare lenders to avail the lowest home loan interest rates but also ensure that they know the measures to undertake, should these rates rise again.

While interest rates cannot be controlled directly by a borrower, he/she can follow certain tips that can lower the interest payment on the amount borrowed. Following is an elaboration on the same.

How to lower interest payment in case of a hike?

If the high rates of housing loan threaten your financial stability, here are the seven tips that can help you deal with the amount payable.

  1. 1-Negotiate with the lender

As a borrower, you can always negotiate your home loan rate with the lender. To do that, you have to prove your creditworthiness. Your credit score will help lenders determine whether you are eligible to avail the loan at lower home loan interest rates.  If you maintain a strong credit history, ask your lender for a lower rate against your home loan.

  1. 2-Look for a prepayment option

Many borrowers find prepayment is the most desirable option for them when it comes to settling the outstanding liability. Financial companies do not charge any penalty for prepayments. Hence, making prepayments can be a good way to reduce home loan outstanding and total interest rate.

  1. 3-Shortening the tenor

The tenor against a home loan is one of the primary factors that determine your interest outgo. If you go for a long tenor, you have to pay the EMIs for an extended period. This increases your total interest payable. On the other hand, choosing a shorter tenor reduces your overall interest outgo. If you are concerned about hiked home loan interest rates, choose a shorter tenor.

  1. 4-Choose the right financial advisor

It is essential to choose the right financial company to avail your home loan from. Only the best HFCs can come with the right solutions that cater to your needs.  They have all the latest updates on the interest rates of home loans in India and can provide you with good tips to lower your home loan interest rates. 

These leading financial institutions also extend pre-approved offers that streamline the loan application process. These offers can be availed on various financial products, including home loan, loan against property, etc. Check your pre-approved offer by providing your name and contact number.

  1. 5-Pay more as EMI

In case you switch to a new job with a good package or have a sudden inflow of surplus cash, ask your lender to revise your instalment amount. If you match the eligibility criteria and are allowed to increase your EMI, it will help you reduce your tenor and overall interest payment.

  1. 6-Use loan EMI Calculator

You can use a home loan EMI calculator to check your liabilities with different interest rates offered by financial institutions. Before you opt for a loan, calculate your monthly home loan interest rates and other additional charges, etc., with flexibility and make your home journey process easier.

Home loans come with a lot of advantages and disadvantages. Since their repayment lasts for many years, borrowers have to pay a considerable sum as interest against their home loan. But don’t let the debt burden your finances. You can try several smart ways to reduce the loan burden without stressing your monthly budget. If you are looking for the lowest home loan interest rate, compare options offered by all top lenders in India and choose the best one that offers you a great deal.