How to reduce HDFC home loan interest rate?

Home Loans from HDFC housing finance are available to all types of buyers of residential property. I have seen that they come with exceptional features and advantageous interest rates. You will be eligible for a loan through the HDFC House Loan. And the interest rate is determined based on the risk associated with the kind of property being used as security. But you must also think of reducing the home loan interest rate if you can’t afford it. So let me tell you how to get HDFC home loan interest reduced.

How to make HDFC reduce home loan interest rates?

1) Choose a shorter term

Your loan term is one of the main elements determining the interest you must pay, as was previously indicated. While shorter tenures, like 10 to 15 years, may assist lower the overall interest payable, longer tenures. But 25 to 30 years will decrease the monthly instalment amount. In order to avoid paying greater interest on your loan, take time to consider the tenure before applying for a loan.

2) Home loan balance transfer may be an alternative

Once you have begun making prepayments on your loan, then the balance transfer becomes an option. You can transfer the remaining outstanding amount to a bank or lender with a reduced interest rate. You can do it if you think the interest rate imposed by your current lender is a little higher than you would like. This is one of the main methods how to reduce HDFC home loan interest rates.

3) Pay a larger down payment

Typically, 75% to 90% of the total property value is financed by banks and other financial organisations. The leftover cost of the property, between 10% and 25%, is your responsibility. The best course of action is to make a larger down payment rather than paying the least amount possible. The loan amount decreases directly in proportion to the initial payment made, which also lowers the amount of interest that must be paid.

I hope you understood how to make HDFC home loan interest reduced.