Why HDFC Home Loan Interest Rate is the best option for you?

Why HDFC Home Loan Interest Rate is the best option for you?

The interest rate holds the most prominent position while accounting for the factors that create an impact on your home loan. And there are many individuals who don’t know about this fact when they look for a suitable home loan option from several banks and housing finance companies. HDFC Bank is one of those private banks that provide a range of housing loan facilities to the customers for various purposes such as home renovation, home extension, home purchase, land purchase, etc. In this article, we will be telling you about why HDFC Home loan interest rate will be the most suitable for you. Youll gain a pretty useful insight after reading this article that will help you in making a better decision.

What is HDFC Home Loan Interest Rate and what are the factors on which it depends?

The first thing that you will need to understand that the interest rate varies from a lender to others. It is primarily decided by the Reserve Bank of India according to the inflation. On having a lower rate of interest, your EMI amount will be automatically lower. You must be wondering why? Well, because the EMI amount is a part of your principal amount and a part of your interest amount. Hence, a lower ​HDFC home loan interest rate​ will automatically lower the value of your EMI amount. That’s why it’s important to choose a lower rate of interest.

HDFC Home loan interest rate ranges from 8.40% to 9% per annum. But there are many important factors that determine your HDFC home loan interest rate. You can have a look at some of them given below.

CIBIL Score:​ This is the most important factor responsible for setting your H ​ DFC Home loan​ interest rate.

Usually, it’s essential to have a CIBIL score of 700 or above in order to get a home loan from any lender. The higher your credit score will be, the less your interest rate can be. A good CIBIL score means you have a good repayment history that will automatically encourage lenders to give you the loan amount at a lower interest rate. If you do not have a CIBIL score, you can build by opting for a credit card and paying the bill regularly. After a few months, your credit score will be good. Then, you can opt for a home loan.

Property Type:​ Not many people know this, but if you are looking for a home loan for a property which is located a good location with all the basic amenities nearby, then the bank finds it more suitable to give you a home loan at a lower HDFC ​home loan interest rate​. The property at a negative location impacts badly your interest rate.

Your Age: T ​ his is a crucial factor determining your rate of interest. There is a certain age criterion which enables you to get a lower rate of interest.

Employment Type:​ Though an HDFC ​home loan​ is available to both salaried and self-employed individuals, the interest rate tends to change according to the job type of individuals. The bank will assess your monthly income and other factors and then will decide the lending rate for you.

Job History:​ It’s important to have a credible job history so that banks can trust you based on your job experience or business history. Having a long history of employment automatically makes you eligible for getting a lower rate of interest.

So, these are the factors that you have to consider before opting for an HDFC Home loan at a lower rate of interest. If you follow them carefully, you will surely get a reasonable rate of interest.