7 smart ways to get a cheap Home Loan, will save millions of interest... note the bank itself

Buying your home is the biggest dream of life, and a home loan is a ladder to fulfill this dream. But the interest rate of the loan may be overshadowed in your pocket. Usually many factors like your income, loan amount and credit score fix interest rates. But there are some smart methods that you can improve your eligibility by adopting and get loan from the bank at the cheapest interest rate. Let us know the 7 tips which have been told by Punjab National Bank (PNB) itself.

Usually, banks offer low interest rates on home loans up to Rs 35 lakh. Therefore, try to pay as much down payment from your side so that your loan amount can be reduced. In addition, select the option of long term (over 15-20 years) to reduce your EMI burden. With this, the bank also assures that you will be able to repay the loan easily.

Your EMI remains the same for a few years at a fixed rate, while in the floating rate, the duration of your EMI or loan continues to decrease according to the market. Nowadays most banks give loans at floating rate, which is a bit cheaper than fixed. Before taking a loan, understand both types of interest rates from your bank.

The bank always wants to ensure that you are capable of repaying the loan. If the income of the person applying for the loan is stable and good, and he works in a government job (PSU) or a reputed private company, the bank considers him a trusted customer and offers attractive interest rates.

Needless to say that if your credit score is more than 750, then the bank takes your loan application with hands. A good credit score shows your financial credit. Therefore, before applying cheap home loan, try your best to improve your credit score by repaying all your old bills and EMI time.

Do you know that most banks and NBFCs provide special discounts in interest rate to women home loan applicants (usually 0.05%)? Next time you apply for a loan, definitely find out from your bank whether you can get any benefit in the interest rate by making a woman (eg your wife or mother) of the house.

Home loan balance transfer is a facility that you can transfer the remaining amount of your existing home loan to another bank, which is offering you better terms and low interest rates. If you get a cheap offer in the middle of the loan period, then this is a great way to save interest.

While planning to take a home loan, always keep an eye on the offers of the festive season, a tie-up or any special promo with a bank builder. Often on occasions like Diwali, New Year or Akshaya Tritiya, bank processing fees waiver or little additional discounts like interest rate, which can save you thousands of rupees.

Although banks give loans on a score above 700, but it is considered ideal to have a credit score of 750 or more to get the best and cheap interest rate.

Yes, giving more down payment reduces your loan amount, which reduces your EMI and also increases the trust of the bank. This increases the chances of getting a low interest rate.

Yes, the new bank may have to pay processing fees and some other fees. Therefore, before transferring, calculate how much interest you are saving even after paying the fees.