How to Get the Best Interest Rate on Home Loan for Doctors?
The home loan market is extremely competitive due to the presence of multiple players offering tailor-made loans for various professionals including doctors.
With the Reserve Bank of India hiking the repo rate, home loan interest rates for doctors have started to tighten. A high rate of interest has a direct bearing on the EMIs. Read on to get the best interest rate on your home loan for doctors.
Research
Home loan is a long-term commitment, where you need to pay EMIs for a large number of years (10 or more). Hence, it’s essential to opt for a lender that not only gives you a high amount but also offers a competitive interest rate.
Earlier, banks and housing finance companies were the major lenders, today home loans are offered even by non-banking finance companies (NBFCs). For instance, Bajaj Finserv offers Home Loan for Doctors up to Rs.2 crore with approval in just 24 hours. Available at a competitive rate of interest, the lender also provides value-added services such as “Property Search” and “Property Dossier” that assist you with finding the perfect home along with the associated legal formalities.
Opt for a home loan on floating interest rate
You can avail a home loan on two types of interest rates – fixed and floating. While in a fixed rate, the rate of interest remains the same throughout the loan tenor, it changes according to the market dynamics in case of a floating rate.
Experts advise availing home loans on floating rates as you stand to benefit in the long run from a lower rate of interest due to strong macros of the economy.
Have a high credit score
The importance of credit score can’t be emphasised enough. A high credit score puts you in the driver’s seat when it comes to interest rate negotiation. A high score allays lenders’ fears regarding default, with them offering a lower interest rate for individuals with a healthy credit score.
Timely payment of bills, outstanding credit card dues (if any) and EMIs of loans go a long way in improving credit score. Before applying for a home loan for doctors, check your credit score and credit report.
Note that while you can check your credit score for free once a year from the four leading credit information companies (CICs) in India – TransUnion CIBIL, High Mark, Equifax and Experian – since all of them use different proprietary algorithms, it’s crucial to check your score individually from all the four CICs. In case of a major difference, it’s must be brought to notice and rectified in case of a mistake.
With these simple ways, you can avail a home at a competitive interest rate resulting in savings in the long run.
