Parameters to decide Interest Rates on Home Loan

Broad parameters to decide Interest Rates

Broadly speaking, there are criteria on which interest rates depend and vary. The amount you are going to take, your occupation, your salary, all these factors determine your interest rates. Loan amount: Loan amount will decide the interest rate you are going to pay. The more the loan amount, the lesser the interest rate

Your Salary: Salary amount will also be one of the deciding factors for the interest rate you are going to pay to the bank. Higher the salary lower would be the interest rate

Type of loan opted for: The concessional rate of the home loan is offered for certain borrowers. Say, women borrowers enjoy a lower rate of interest compared to others, under different schemes. This way the interest rate could be higher or lower.

It is generally advantageous to take a housing loan as it would enable you to get tax exemptions. However, you must consult your CA/ income tax advisor to know the benefits/disadvantages in your specific case. Eligibility Criteria To become eligible for home loan the eligibility standard must be matched. That becomes an important deciding factor for your loan amount. Instances like: Salaried, Self- Employed Professional or a Businessman Income Age Qualifications Number of dependents Co-Applicants Income Assets, Liabilities, Stability, and Continuity of Occupation of the borrower Savings History Further, the loan eligibility will also be dependent on the value of property selected by you. The deciding factor of the loan amount that would be granted to you will be the close assessment of the value of the property, the capacity to repay the loan amount and many others to determine the potential borrowers. So, an eligibility calculator can be used for the same.