Business Desk – Bank Of India Home Loan: If you are planning to take a home loan to buy a house, then you should have complete information about the interest rates offered by the big banks of the country. Home loan interest rates in Bank of India start from 7.80%, while SBI rates start from 7.25%. Given this situation, if you are thinking of applying for a loan, it is very important to decide which bank will be most beneficial for you.
Right now, there is a lot of competition going on regarding the home loan interest rates offered by the big banks of the country. Many banks are giving loans at attractive rates. State Bank of India (SBI) is offering home loans at an initial interest rate of 7.25%, making it one of the best options available in the market.
At the same time, Bank of India is providing home loan facility to its customers at an initial rate of 7.10%, while Union Bank of India is offering loan at an initial rate of 7.15%. Punjab National Bank is also offering home loans at an initial rate of 7.25%, which is at par with SBI rates. In the private sector, HDFC Bank has slightly higher interest rates, with home loans starting from 7.75%.
These rates clearly show that there is fierce competition among public sector banks for low interest rates, due to which customers are getting more affordable home loan options. However, the final interest rate applicable to any borrower depends on factors such as his customer profile, credit score and loan amount.
Keep these 4 things in mind while taking a home loan
- Know about pre-payment penalty
Many banks impose a penalty if the loan is repaid before the due date. Therefore, definitely get complete information about this from the banks, because by repaying the loan early, the bank gets less interest than initially thought. Therefore, they often impose certain terms and conditions to deal with this problem. As a result, make sure to gather complete information about this while taking a home loan.
- Keep an eye on your CIBIL score
The interest rate at which you get a home loan also depends on your CIBIL score. CIBIL score is an indicator of a person’s credit history. CIBIL scores are determined by specialized credit profiling agencies. This assessment checks whether you have ever taken a loan before.
How have you managed credit cards and other similar financial instruments? An individual’s credit score is determined by his repayment history, credit utilization ratio, and his track record of timely payment of existing loans and bills. This score generally ranges between 300 to 900. However, lenders generally consider a score of 700 or above to be good.
- Keep an eye on offers
From time to time, banks keep giving attractive offers to people wishing to take loans. Therefore, before applying for a loan, you should know about the different offers available from different banks. Being hasty in taking a loan can prove to be a costly mistake. Before taking the final decision of taking a loan, make sure that you do your research thoroughly.
- Longer loan tenure may reduce your EMI, but it will be heavy on your pocket.
While taking a loan, people often choose a longer repayment period to keep their monthly EMIs low. However, keep in mind that the longer the repayment period. You will have to pay that much more interest in the end. Choose a balanced tenure based on your financial condition and monthly savings so that you do not remain burdened with debt unnecessarily for a long time.
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