Affordable Housing Loan Interest rate

1. Fixed Interest Rate

With a fixed rate, your interest remains unchanged for the loan tenure. Even if the market rates drop, your EMI remains unchanged.

2. Floating Interest Rate

Floating interest rates vary with market conditions or external benchmarks. While your EMIs may fluctuate, floating rates can lead to cost savings when market rates go down.

3. Hybrid Interest Rate

A hybrid rate combines the features of both fixed and floating rates. It typically starts with a fixed rate for an initial period before switching to a floating rate.

1. Credit Score

If your credit score is above 700, it shows you manage money well. This can help you get a loan at a lower interest rate.

2. Market Conditions

Interest rates go up or down based on RBI’s policies. If the repo rate is high, even low-cost home loans can become more expensive.

3. Loan Amount and Tenure

Taking a bigger loan or choosing a longer time to repay it may lead to a higher interest rate, as it is riskier for the lender.

4. Lender Policies

Different lenders have their own rules, base interest rates, and special offers. These can change the final rate you get.

5. EMI Payment Ability

If you have a stable job and regular income, lenders see you as less risky. This can help you get a better interest rate.