8 Tips to Reduce Interest on Your Home Loan and Save Money

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8 Tips
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Overview
If you are planning to buy your dream house but
you are running short of funds, a home loan is an
ideal solution for you as it not only decreases
the pressure of paying a huge amount in one
go but also helps you to manage other expenses. A
home loan is a sum taken from any financial
organization like banks and NBFCs to buy a house.
It is a preferred mode for buying a house or
land for constructing a house. Besides, people
also prefer taking home loans for renovating and
repairing their existing homes.
Financial institutions and home loan providers
that provide these loans have housing loan
eligibility and need security from the person
applying for it. This security comes in form of
the title deed of the property to ensure its
authenticity and down payment to secure the
contribution of the borrower. The home loan
process can prove to be a little overwhelming if
youre not aware of the stages, from fulfilling
the housing loan eligibility criteria to
the disbursal, if one is not well-aware of the
necessities but one of the major benefits is the
lower interest rates that it comes with
as compared to any other forms of loan. Also, it
provides another significant advantage of
claiming a tax deduction on EMIs.
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H , Are Some Tips To Ge Lower Interest Rates On
Yo Home Loan
R GIVE MORE VALUE R SOLVE PROBLEM R HELP CUSTOMER
If you ardently want to call a house your own but
are concerned abo managing your finances with the
EMIs, the best way is to find a hom with a lower
interest rate. Here, are some tips to get lower
interest r on your home loan
Loan Amount Loan Tenure
Interest Rate
Approval Time
Eligibility Criteria
Documentation Requirements
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Choosing Tenure For a Home Loan
If you apply for a home loan, you must be aware
that the loan tenure is the deciding factor for
the interest you need to pay. Although longer
tenures (25 to 30 years) will decrease the
monthly installments, shorter tenures (like 10 to
15 years) will reduce the overall interest that
is to be paid. So, make sure to choose the tenure
carefully to avoid higher interest payments for
your loan. You can use the home loan EMI
calculator for checking and comparing the
interests and tenure.
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GO FOR PREPAYMENTS
SAVE MONEY
Depending on the rates, the interest rate on
loans can either be floating or fixed. Lenders do
not charge prepayment on floating-rate loans, so
in such cases you can make frequent prepayments
timely this will reduce the principal amount,
hence decreasing the total interest, but this is
not the same for fixed-rate loans. In such
scenari the lenders charge a certain percentage
on prepayments, so you must always ensure the
prepayment charges with the home loan
providers that you may have to pay
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BALANCE TRANSFER CAN BE ONE OF THE ALTERNATIVES
The concept of balance transfer comes into light
when the borrower has already started repayments
for the loan. If you come to know tha the
interest rate levied by your home loan provider
is somewhat high as compared to other providers,
you can transfer the existing loan amount to
another bank or provider with lower interest
charges. Yet, balance transfer should be among
the last options to be considered the borrower as
it can cause higher penalties in the case of
due payments.
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INTEREST RATES COMPARISON
It is always advised to do some research on any
loan that you are planning to take. There are
various factors that one must keep in min before
finalizing a home loan, one of them being the
interest rates th the lender charges. There are
multiple ways to get a better picture o the
interest rates levied by the lenders along with
lower interests and other charges options. So,
its much better to compare and analyze different
rates provided by various home loan providers and
then make the final decision.
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Contribute More
This is a very simple way to reduce the interest
that you pay against the loan. Most people prefer
paying a lower amount as a down payment initially
and let the home loan provider finance the major
pa but instead of paying less, it is much more
reasonable to pay a highe amount as a down
payment since the higher you pay at the
beginnin the lesser is the loan amount, which
subsequently reduces the overall interest that is
to be paid.
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IMPROVE YOUR CREDIT SCORE FOR BETTER DEALS
A credit score is a 3-digit number ranging from
300 to 900 that shows your creditworthiness to
the lenders. It is calculated based on
the repayment history, loan account types, length
of tenure on loan accounts held, and payment
habits. If you have a score of more than 750, you
can get better and lower rates on the loan. It is
also seen tha the home loan providers prefer
customers with a good credit score and if all the
repayments are timely done, the chances for
charging lower interest rates by the lender
increases.
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INCREASING YOUR
There are many home loan providers that allow the
borrowers to revise the instalments yearly. This
is a good option for those who ha been promoted
and are now drawing a higher salary as they
can choose to pay higher EMIs to reduce the
tenure, which will substantially lower the
overall interest to be paid. You can use the
E Calculator to calculate easy monthly EMIs for
better planning and payments.
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EXTRA
It is always better to pay an extra EMI to save
interest and repay the loan amount faster. This
is preferable for the borrowers who
receive annual bonus and is an effective trick to
reduce the outstanding principal.
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Are you looking for a home loan to achieve your
dream of owning your house? Clix Capital is your
one-stop solution. We offer home loans of up to ?
2 Crore with a flexible repayment period of 25
years. Although we have competitive interest
rates on home loans, you can use the tips
mentioned above to get lower interest rates on
home loans. So, grab the best home loan interest
rates that help you get your dream home. Apply
now!
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OUR VISION
To summarize, the best time to apply for a home
loan is when you are earning well with minimal
financial obligations. Taking a home loan at the
right time will ensure timely payment and boost
your credit score. At Clix Capital, we offer home
loans of up to ? 2 Crore with 25 years of the
repayment term. Avail of our home loan at the
right time and become the proud owner of your
dream home without any financial crunch.
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