Loan Against Property


Our Loans Against Property can help you through life’s biggest moments. Weddings, personal passions, educational fees or career changes - we’ve got you covered. Refinance any existing commercial or residential property at the best rates today.


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Udyog Loan Against Property


Are you an MSME owner looking to scale your business operations? Take your business to new heights with Godrej Capital Udyog Loan Against Property. Our loan solutions enable business owners to get higher loan eligibility by allowing multiple sources of income to be considered. With quick loan approvals and attractive interest rates, our goal is to help your business achieve growth.


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Commercial Property Loan


Take your business to the next level with a Commercial Property Loan that finances construction, extension or improvement to make your business goals become reality. With plans designed for your life, you can rest assured that your business empire is in safe hands.


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Balance Transfer


Transfer your existing loans to Godrej Capital and experience the benefits of lower interest rates, flexible repayment terms, and significant EMI savings. Enjoy higher eligibility, along with a Top-Up loan, to take care of your extra needs.


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Home Loan


Seeking a Home Loan to buy a ready-to-move-in property, an under-construction house, or renovate your current residence? Our Home Loan, featuring low interest rates and flexible EMI plans, is specifically designed to help you accomplish buying your dream home.


Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Plot Loan


Found the perfect spot to build your future? Our Plot Loans can help make it yours. Our loans offer you the financial help, low interest rates and flexible payment options you need to construct the home of your dreams.


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Professional Loan for Doctors


Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.


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Professional Loan for Doctors


Whether you need working capital to start your own clinic or upgrade your current practice with new facilities and hire skilled staff, our professional loans for doctors are here to help you.


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Professional Loan for CAs


Want to scale your professional practice? We now offer professional loans for doctors and chartered accountants (CAs) to help you expand your existing set-up, hire more staff, buy modern equipment, and fulfil other business requirements to improve and develop your services.


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Business Loan for MSMEs


If you're an entrepreneur with a small business or an MSME and are aspiring to take your venture to greater heights, you're in the right space! While you hustle for your company's success, we stand prepared to accompany you on this journey. Access unparalleled funding possibilities with our MSME-focused business loans, aligning seamlessly with your endeavors for business growth.


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Business Loan for Women


Are you a woman entrepreneur with a vision for business growth? We are excited to fuel your ambitions with our women-centric business loans. Whether you're spearheading a small-scale business or a micro enterprise, our MSME-focused business loans are designed to meet your business needs.


Key Benefits | Interest Rates | Calculators | Documents Required | FAQs

Business Loan


We give you the courage to take that next step that your business needs. Godrej Capital Business Loans empower you with customizable financing solutions to grow your business to the next level!


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What Affects Your Home Loan Interest Rate? (Part I)

What’s the first thing you look at when you apply for a Home Loan? Most people would say, low interest rate or affordable interest in home loan. The reason is simple. Home loan interest rate is directly proportional to monthly EMIs paid by a borrower, affecting the overall cash outflow. Hence, it’s advisable to compare the interest rates and avail of a loan from a lender offering the most competitive rates.


However, have you thought about the factors affecting your home loan rate of interest? Two aspects affect your home loan interest rate - customer-centric and macroeconomic factors.


In this two-part series, we will dig deep into both. Part I of the blog will talk about the customer-centric aspects, while part II will focus on the macroeconomic ones.


Customer-centric Factors Affecting Home Loan Rate of Interest

● Credit Score
Lenders pay close attention to your credit score while evaluating your loan application. A three-digit score, ranging from 300 to 900, reflects your creditworthiness and home loan eligibility. A good credit score (above 750) not only enhances your Home Loan eligibility but also increases the chances of availing of a loan at an affordable interest rate.


A good credit score reflects prudent and responsible financial behavior, and lenders perceive you as a low-risk borrower. In other words, lenders are assured of loan repayment for borrowers with a high credit score. It gives you more negotiating power, and you can avail a home loan with a low interest rate.


Also Read: What Can You Do To Improve Your Credit Score


Also Read: Bad Credit Score and its Impact on Home Loan Eligibility


To build a robust credit score:


  • Pay existing EMIs and credit card dues on time


  • Keep credit utilization ratio low


Equally essential is to constantly monitor your credit report and rectify any anomaly at the earliest.


● Job Profile

The job you are in plays a crucial role in determining the home loan rate of interest. If you are in a stable job that offers a competitive salary, you are more likely to get home loans at lower interest rates. This is because a stable job ensures you have a regular cash flow that will help you pay EMIs on time. Also, lenders evaluate the overall work experience to gauge the borrower’s growth prospects.


On the other hand, if you are a frequent job hopper, it raises questions about your credibility and repayment abilities, and lenders perceive you as a high-risk borrower. Therefore, they raise interest rates, which subsequently pushes up the EMIs. Therefore, make sure to stick to one stable job for a long time to benefit from lower interest rates on home loans.


● Debt-to-Income Ratio

Debt-to-income (DTI) ratio is the percentage of your monthly income that goes towards paying monthly debts. Along with credit score, lenders use this metric to analyze and determine borrowing risk. A low DTI ratio signals a good balance between debt and income. On the other hand, a high DTI ratio indicates that a large portion of your monthly income is channelized towards paying existing debts.


If you have a high DTI ratio, it can increase your home loan interest rate. This is because lenders put you in a high-risk category with increasing chances of default. Also, a high DTI ratio raises a red flag and raises questions about your repayment capacity, pushing up the interest rate. Hence, it is advisable not to eat more than what you can chew and keep this ratio on the lower side.


Also Read: Is Interest Rate Everything in Home Loans?

● Property Location

While buying a home in a location with good amenities has its perks, it also affects the interest rate. On most occasions, a home located in an area with proper amenities and ready access to transportation invite lower rates This is because houses in such areas have higher resale value than in under-developed locations.


Also, properties at premium locations are pre-sanctioned by lenders, which brings down home loan interest rates. Therefore, it pays to buy a home in an up-and-coming locality.


● Down payment

Down payment is the amount you need to pay upfront, and it generally constitutes 15 to 20% of the property’s value. The lender finances the rest through a loan. The higher the down payment, the lower the loan quantum, and subsequently credit risk.


This subsequently helps in lowering the home loan interest rate. Thus, if you wish to secure a home loan at a low interest rate, save aggressively and make a higher down payment.


💡Pro-tip: Use home loan EMI calculator online to calculate monthly EMI payments and plan your budget wisely.


As evident, almost all the customer-centric factors are within your control. Use them to your advantage to avail home loan at a lower rate of interest.


Also Read: Wondering What Affects Your Home Loan Rate of Interest? Let’s Find Out (Part II)


Looking to get a home loan? Explore Godrej Capital Home Loan and Apply Now for attractive and flexible loan features.


Godrej Capital is the financial services arm of Godrej Group which offers home loans, Loan Against Property and other secured loans. With innovative products and offerings, customers can get hassle-free loans on easy terms and conditions. Click here to know more about the offering.


Disclaimer: The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit