HOME LOAN: HOW TO GET THE BEST RATE
The home loan market is as active as it was in the last two years. Always remember that rates offered by all the banks are negotiable, you can bargain from 0.25 to 0.50 percent in both fixed and floating options. The difference of amount at the end of the loan tenure may translate to thousands of rupees, a rupee saved is a rupee earned. Check out the interest rates offered in the market before finalizing your lender. As a result of stiff competition among banks, many offer various schemes to lure customers.
Here are some tips to help you get a good deal:
- Unless loan amount is a constraint, approach prospective lenders only after the property is finalized and disbursement is required in the next few days. Most lenders are interested only in disbursements and reserve their best rates only for immediate disbursement cases.
- Bundle your loan request with the loan requirements of your friends and colleagues and offer a larger loan portfolio to the bank. This is most effective if the property is in the same building since the legal and technical costs can be reduced, which can then be passed on as a benefit to you.
- If the property is being bought from a reputed builder, if it is featured in the approved list of banks, you can also employ the month-end trick by negotiating till 23 rd or 24 th of the month. Every bank has monthly targets for its staff and as the month-end nears, the bank offers slightly better terms to enable the staff to fulfill their target. However, this is unlikely to work where the property title/valuation is not absolutely clear
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