Akash Verma, a 30-year-old, Software Engineer by profession wants to avail a home loan of Rs.30 Lakh so as to buy a beautiful home in New Delhi. In order to avail the same amount, the has applied for the same in multiple lenders. Soon after evaluating his profile, State Bank of India has agreed to offer him the loan. He was happy and at the same time excited to know that country’s largest lender is offering the credit to him.
Akash, in his excitement actually forget to check the rates. Before he takes that final decision, it’s important that he must be aware of the nitty-gritty so that he can further enjoy a hassle-free journey. So, let’s just dig deep into the matter.
Why You Should Know about SBI Home Loan Interest Rate
Talking about the SBI home loan, it would not be wrong to say that the journey begins from knowing the interest rates first. Yes, it is important that one should know the rates prior so as to enjoy a hassle-free journey. Moreover, in the current scenario, the bank offers the HL to the applicants at an interest rate that ranges between 8.45%-9% per annum. Well, if we discuss more about the rates, they are currently at the state of lowest home loan interest rates. Well, which simply means you can enjoy the pocket-friendly monthly installments along with the Interest Outgo. The lower rates you have, the better it is for you in the long run as it reduces your overall repayment burden.
Now that we have talked about the rates, it’s important that we should talk about the factors affecting the same:
Income: If an applicant earns a good monthly income, there are higher chances, he/she might get the attractive rate. Now you must be thinking how it is possible? Well, with a good monthly income, an individual can easily repay the loan without any hassle. The higher income you have, the more money you get in hand to manage your expenses, hence many lenders would be more than happy to give you the competitive rates.
Credit Score: If an applicant is having a good score, there are high chances that many lenders can give him the attractive rates. A good score is no doubt a gateway that allows you to enjoy a hassle-free journey as it shows the creditworthiness of an applicant. It reflects the credit history and repayment record of an individual and on maintaining the good one, works in the favour of an individual in order to get the best home loans deal. However, if you want to take a calculative decision, you can even use a SBI home loan EMI calculator that gives you with the exact and accurate values of your monthly installments.
Relationship with a Lender: If you are an existing customer of the bank, in that case, it would be easy for you to get the better rates. Yes, being an existing customer, you can negotiate with the lender and with your bargain power, you can enjoy the attractive SBI home loan interest rate online.