Home Loan Services

There are varied ways by which you can lower interest rate on home loan. Let's check out some of them-

• Approach the lender- If the customer is charging you with high interest rate then you should approach the bank and ask it to convert the higher interest rate to the one which is given to new borrowers. You should not afraid of that bank will not accept your request. In today's competitive world, every lender is working hard to retain their customers.

• Negotiating- If the borrower has an impressive repayment history then he can approach lender to negotiate. If the bank will reject the negotiation then the borrower can appeal to get his loan transferred to other lender. In most of the cases, principle bank agrees to do negotiation when borrower request to loan transfer. However, you should choose the best deal in the market and carefully take a decision as you might be charged for transfer.

• Balance in loan tenure- You should keep your remaining loan term into consideration at the time of applying for the negotiation. If your loan is having less than 10 years, then you will not be benefited to the great extent. You will be able to enjoy increased benefit if your loan amount tenure is over 10 years.

• Opt for tenure cut over EMI- When there is a reduction in the interest rate of loan then you should not reduce your EMI, although it may look attractive to you as it will curtail burden on your monthly budget. It is advisable to cut the tenure because if you will lower your EMI then it will increase the loan tenure period.