Each lender has their own set of rules for the types of properties they will finance and the types of borrowers they will work with. Many lenders also offer borrowers preferential interest rates.
However, you should be aware that the lowest rate is not always available to all borrowers and often comes with various conditions. Shortlist a few lenders, then start comparing their terms and conditions to find the best interest rate. Lower interest rates will help you minimize your EMI if you find a suitable lender.
Borrowers with a great credit score are usually offered the lowest rate, so you should get your credit report and compare the best available rate to your credit score. Having a female borrower as a co-applicant can also help you save 0.05% on interest. So, if you take the loan with your spouse, you can get a better interest rate.
The bank’s margin will remain the same for all mortgage applicants, but the RBI circular allows banks to charge borrowers a risk premium. The risk premium imposed by the bank is based on the degree of risk you represent for the bank and therefore differs from one borrower to another.
Banks are required to revise interest rates at least once every three months since key interest rates are linked to an external benchmark. Accordingly, any change in the external benchmark rate must be passed on to the borrower within three months of the change taking effect.
How to Calculate the EMI Loan
There are a variety of online calculators available to help you calculate your EMI home loan. You can try ET Wealth’s online home loan calculator to download your detailed monthly loan amortization schedule at
https://economictimes.indiatimes.com/wealth/calculators/home-loan-calculator
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