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Finance

Get the Lowest Interest Rate Home Loan in Coimbatore

Located on the river banks of Noyyal, Coimbatore is Tamil Nadu’s second-largest city. The rich hills, lavish greenery and spectacular waterfalls make it one of the picturesque tourist destinations. The city is also famous as “Manchester of South India” owing to the high contribution of its textile industry.

So, having one’s own house in this city is itself a luxury. For this, residents in a temporary financial crisis can seek a lump sum through a home loan in Coimbatore to build their houses. However, individuals should aim to get a lower interest rate from their lenders to reduce interest outgoes.

Tips to get low rate of interest on home loans

One can reduce their home loan interest rate by following the tips mentioned below:

  1. Opt for a shorter home loan tenor

Applicants should take their home loans for a shorter tenor. It reduces the financial risk of the lending agencies as they get their entire loan amount within a brief duration. So, there is a significant chance that lending agencies will consider lower interest rates for housing loans.

However, individuals should be mindful that a shorter tenor makes the EMI amount considerably higher. Therefore, they should consider this according to their repayment capabilities.

Additionally, they can utilise the home loan EMI calculator to know the impact of this loan tenor on their monthly payable amount.

  1. Consider a home loan balance transfer

Existing customers can also lower their interest rates effectively by opting for a balance transfer. They just need to keep a close eye on other lending agencies offering loan transfer opportunities at a lower interest rate. In this way, their interest outgoes can be significantly curtailed.

However, borrowers need to know that the existing lender will charge a penalty for this balance transfer. So, before opting for this, they need to calculate how much interest they will save.

  1. Meet eligibility criteria of lenders

Lending agencies calculate home loan eligibility before sanctioning credit advances and adjusting its interest rate. Individuals meeting the criteria can negotiate with their lenders for a more favourable interest rate. If one’s home loan eligibility criteria like CIBIL score and annual income are high enough, lenders show confidence in such borrowers. They assume that such borrowers can pay off their obligations on time without defaulting and disburse home loans at a lower interest rate.

  1. Make a substantial down payment

Generally, the lending institution sanctions 75-90% of the market value of a property in a home loan. Borrowers are responsible for funding the rest of the amount.

However, individuals should consider making more initial payments out of their pocket to get a lower interest rate. As it reduces the impact of default on loan repayment, lenders may sanction a credit advance at a lesser rate.

Procedures to apply for a home loan in Coimbatore

Following is the stepwise guideline to apply for a home loan:

Step 1: Visit the preferred lender’s website. Search out the application form for a home loan.

Step 2: Fill in the form with appropriate details. Attach all the required documents, such as address proof, KYC papers, statement of bank accounts, proof of annual income, etc.

Step 3: After validating the documents and application form, lending agencies offer a sanction letter. Individuals must sign the letter and forward a copy of it.

Step 4: Individuals have to pay the processing fees. 

Step 5: Lenders send their representatives to the property site for authentication purposes.

Step 6: Builders get the loan amount from the lending institution on behalf of applicants.

Thus, it is possible to get a home loan in Coimbatore at a significantly low-interest rate. However, applicants need to stay conscious of the abovementioned factors and consider them properly to get a favourable rate. It will reduce their interest outgoes to a substantial extent.

Read More: https://pediamate.com

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