How to reduce home loan interest?

This is where you can know how to reduce the rate of interest in home loan.The biggest investment for a middle class man is home loan. The most efficient ways in which you can do savings. You can also use these strategies in making other loans too.

Most efficient ways 

Home Loan

Pre-loan

Take a loan from a family member with the highest CIBIL score. Your CIBIL score is calculated based on your credit behaviour as reflected in the ‘Accounts’ and ‘Enquiries’ section of your CIR ranges between 300-900. A score above 700 is generally considered as a good score.

Let private banks complete. Everything is negotiable.

You can complete private banks to know where you get comparatively less interest. 

Make sure the bank allows repayment and has 0 closing charges.

Make sure the bank allows you repayment whenever and have much you want. Negotiate with banks and have 0 closing charges.

Also Read: 3 Best Ways To Earn Money

Home Loan

After-loan 

Refinance (percentage is always negotiable)

If you have already taken a loan from a bank, at times you were not having your CIBIL score or you were not getting a loan from some other banks. At times if some other bank offers you with less percentage of interest, then you can refinance your loan. Moreover, the later bank will pay all your existing loans in your former bank, then you can continue repayment the later one. It is profitable as of now you have a good CIBIL score and you have to pay less interest.

Also Read: 5 Ideas To Monetize A Public Speaking Business By Brian Tracy

Closing cost 

Make sure you have proper knowledge about closing charges. 

Charges of a new loan

A new loan contains processing fees.

Pay-Early

This part is the most profitable one.Extra repayment will reduce the time period of the loan which will help to reduce the interest value. Always try to pay extra and reduce your time of repayment. 

Pay selling useless stuff

You can sell your useless stuff to get some extra money.

Pay lottery/bonus    

You can use lotteries and bonuses from the banks. You can take loans through female accounts as it contains discounts. 

Pay using friends/family 

You can arrange money from family and friends which you can return to them later after repayment of loans. This will reduce the rate of interest.

Try rental income 

You can arrange money by giving rent or other bonuses.   

Also Read: How To Start A Business In 6500 Rupees And Earn 30 Lakhs

Also Read: 5 Habits Of Successful People.

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Hrishita Rath
Heya, This is Hrishita Rath. A Law student (BBA/LLB) at SNIL and an off-time content writer. Knowledge is not inbuilt, it is what we gain through experience. Keep gaining, Keep experiencing. I love music and only music. I believe justice is what we believe and humans are good believers.
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