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Home Loan Rates

Every bank usually has similar interest rates when it comes to Home Loans. The changes, if any, will be extremely minimal and hence we will talk about the home loan rates at a general level. However, interest rates for Resident Indians and those demarcated for Non -Resident Indians are different.
In your quest to get the perfect home loans, you must ascertain that the home loan rate that you get is the best in business. Moreover, the home loan deal must be perfect not only in terms of the interest rate but also other ancillary facilities, amongst which the most important is that the home loan rate must be convenient. There are two types of Home Loan Rates that are offered by banks and other housing finance companies. A borrower can choose from:
» Fixed Rate Home Loan
» Adjustable Rate Home Loan
There is a third type, which is essentially a combination of both the rates.

Customized Structuring of Loan Rate

There are various banks that come up with variants to the home loan rates. This is usually done to make their home loans more popular amongst the various groups of earning professionals. For e.g. The ICICI bank has come up with SURF, which is short for Step Up Repayment Facility. In this particular option the bank considers a percentage increase in income, which is notional in nature, in lieu of which a borrower is given various options wherein a graded increase of EMI can take place over the contracted tenure of the loan.
In this option there is a three pronged increase in the EMI, wherein, the Primary part has the lowest EMI, which is followed by the Secondary and the Tertiary, wherein the Tertiary is the highest EMI.

Flexibility in Installment Plans

Quite a number of banks offer a flexible loan repayment structure which is based on the fact that there might be a case wherein the income might reduce during the loan prepayment term. This is usually the case wherein one of the borrowers of the loan is going to retire before the loan matures. Here the loan rate is calculated accordingly. Banks consider the income of both the applicants of the loan (only joint applicants are considered for such loan options) and thus offer a step down repayment facility.

Fixed and Floating Rate

Herein, the home loan borrowers will not only get the benefit of fixed home loan rates but also floating home loan rates. So, what one can do is, a part of the loan can be booked under a fixed rate plan, while another part can be booked under a floating rate plan. Many home loan borrowers go for this loan to minimize an adverse impact that they might incur through one or the other types of loan rates. Moreover, if they are any benefits to be had, they can avail of those also.
Banks will offer you very little in terms of a lowering of home loan rates. One must configure a home loan repayment plan that makes the home loan a worth while option.