Home Loan

Home Loan Interest Rates Falls Below 7%

Do you want to avail a home loan for your dream home? If so, good news is in store for you. Almost all leading banks in this falling interest rate system, including the State Bank of India and HDFC, lowered their home lending rate on a number of occasions and thus historically low interest rates on housing loans, often even under 7 percent, provides a very good possibility for home borrowers.

The rate of domestic borrowing dropped to 6.7 percent compared to a repo rate cut mainly recorded by public sector banks in the last four months by the Reserve Bank of India. The interest rate for new home loans is now between 6.7-7% for PSU banks, which include the State Bank of India. Many who have redeployed home loans from these banks have begun this month to get lower rates. But those with domestic loans from other banks and MCLR loans also pay a much higher rate for their domestic loans. This is the time to change his house loan to a PSU bank to take advantage of the low rates of domestic loans.

Following are five tips to reduce the responsibility for home loans:

  • Consider changing your loan

It’s worth it if your current loaner doesn’t give you the best rates on home loans and feels you can reduce the full interest burden by transferring your loan to another loan. If you earn 50 basis points less than your current household loan from other lenders, experts suggest the remainder of your payment term is more than 15 years, as is the reason why your home loans should be transferred.

  • Pay

Paying portion lets you reduce the liability of your home loan more easily. You will make part payments on your home loan using your Annual Bonus and Maturity from insurance policy. For example, your EMI would amount to about Rs 27,000 for a Rs 30-lakh home loan with a 20-year term of 9% interest. In addition to paying the EMI, your home loan will be paid out in 18 rather than 20 years if you pay an extra Rs21,000 annually. In this scenario, you save about Rs 4.1 lakh by interest rate savings.

  • Pay a little over your EMI

If you pay an extra amount per month over your real EMI home loan number, it will allow you to reduce your loan burden significantly. In the above example, you will repay your household credit in 16 years, four years before your original tenure, if you pay a further Rs 2,500 per month.

  • Refinance other loans with your home loan

If you have other expensive loans, like  personal loans, credit card loans, then you can pay the personal loan back with a supplement to your home credit and use the EMI for personal credit to pay the home credit more easily. For example, you have 20-year home RS 30 lakh loans, and you have another RS 4 lakh personal loan at an interest rate of 12 percent that you pay about Rs 8,900 EMI. Assume you have a repayment of the personal loan for another three years (main balance of around Rs 3 lakh). In this situation you can add Rs 3 lakh to the home loan and pay the personal loan and you can repay the home loan using an EMI loan of Rs 8,900.

  • Take a long domestic tenure and launch a SIP

A long duration loan and simultaneous start up of a SIP in a diversified stock fund is the perfect way for you to reduce your home debt liability. This may sound ridiculous, but when you see the equation you’re shocked to find out the value. For example, for 20 years, you want to receive a home Rs 25 lakh loan at a rate of 9%. The total amount you pay (including the interest and principal) will be Rs 22,493 in this case and Rs 53,98 lakh. If you take a 25-year house credit your EMI will fall to Rs 20,980, instead of a 20-year house credit. Therefore the cumulative amount you pay in 25 years will rise to Rs 62,94, close to Rs 9 lakh more.

Documents Required for Home Loan

  • Completed Home Loan Application Form
  • Passport size Photographs
  • Proof of Identification
  •  Proof of Age
  • Proof of Residence
  • Income Documents

Now you know what are the documents required for home loan. You can easily apply for home loan now 


A home loan available on Finserv MARKETS will be a great choice if you are thinking of taking out a home loan. It comes with a flexible tenure for repayment, amazing deals, a swap option for the loan balance, and other top-up options. It also provides protection that you can use to cover the individuals that you love. The entire application and approval process is simple, quick and can be done entirely online.

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