Owning a home is a dream that tops the bucket list for many Indian families. A home loan is usually the key that can help unlock this dream. When you take a home loan, one of the most important factors is the interest rate. A lower interest rate can save you lakhs of rupees over the loan's duration. If you want affordable options and a lender focused on housing finance, you can check out a home loan from India Shelter. Read on to know what it offers and how it might fit your financial goals.
Why Choose an India Shelter Home Loan
India Shelter Home Loan provides affordable, tech-enabled housing finance with streamlined documentation, quick approvals, balance-transfer options, and more. The NBFC offers market-competitive interest rates and flexible tenures, aiming at low- and middle-income borrowers seeking manageable EMIs.
Securing the lowest possible India Shelter Home Loan interest rate is a result of smart financial planning. With the right approach, you can significantly reduce your borrowing cost.
Maintain a High Credit Score
Your credit score is a very important factor that lenders consider. It is a three-digit number that reflects your creditworthiness. A high credit score, ideally 750 or above, shows that you have a history of responsible borrowing and timely repayments.
Lenders see you as a low-risk applicant and are more likely to offer you their best rates. To maintain a high score, always pay your credit card bills and other loan EMIs on time. This simple habit can be your ticket to get attractive India Shelter Home Loan interest rates.
Make a Larger Down Payment
A down payment is the initial amount you pay from your own pocket. While lenders usually require a minimum down payment, paying more can be highly beneficial. A larger down payment reduces the total loan amount you need. This lowers the risk for the lender.
In return for taking on more of the initial cost, they may offer you a lower interest rate. When calculating home loan EMIs, you’ll see that a smaller loan principal also makes the overall cost more favourable for you, as it can lead to smaller monthly payments.
Choose a Shorter Loan Tenure
The loan tenure is the period over which you repay the loan. While a longer tenure results in a smaller EMI, it often comes with a slightly higher interest rate. This is because a longer period means more risk for the lender.
Opting for a shorter tenure, if you can afford the higher EMI, is a smart move. Not only can it help you secure a lower India Shelter Home Loan interest rate, but it also means you pay far less in total interest over the life of the loan.
Consider Prepayment to Reduce Your Burden
Even after you have taken the loan, there are ways to reduce your interest burden. One of the most effective methods is making prepayments. A prepayment is a partial payment you make towards your principal loan amount, over and above your regular EMIs.
Making such prepayments can drastically reduce your outstanding principal, as you’ll see when calculating home loan EMIs. When your principal amount goes down, the interest charged on it also decreases, saving you a lot of money in the long run.
Ensure a Stable Employment History
Lenders look for stability. A steady job with a reputable company and a consistent income history gives them confidence in your ability to repay the loan. If you have been switching jobs frequently, it might be seen as a sign of instability.
A stable employment record can be a key factor in not only getting your loan approved but also in securing a favourable India Shelter Home Loan interest rate. It shows that you are a reliable and responsible borrower.
Use an EMI Calculator for Smart Planning
Being a well-informed borrower always works in your favour. Before you even apply for the loan, you should have a clear financial plan. The process of calculating home loan EMIs is a crucial first step. This financial planning is essential for managing your EMIs effectively.
Using an online home loan EMI calculator helps you understand your repayment capacity. When you approach the lender with a clear understanding of your finances, it creates a positive impression and can portray you as a responsible borrower.
Conclusion
Getting a low India Shelter Home Loan interest rate requires a disciplined and proactive approach. By focusing on building a strong credit score, saving for a larger down payment, and planning your loan structure wisely, you can make your dream home more affordable. Remember, the process of calculating home loan payments is not just about numbers; it is about taking charge of your financial future. These steps will not only help you save money but also make your journey to homeownership a smooth and rewarding one.
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