With innumerable lenders flocking the market to grab the much needed funds, it has become imperative to know about current home loan interest rates. Borrowers have no idea how much they should borrow or which lender is best suited to lend funds. All this comes down to one thing – THE PRICE! A single factor governs all other factors and that is the cost of borrowing. The cost of borrowing determines your affordability in a single glance.

Home loans are the easy source of unsecured funds and that too at marginal rates. With Bajaj Housing Finance Limited providing various Top-up Loans in relatively higher rates than the current home loan interest rates, availing funds over and beyond the specified Home Loan limit becomes more feasible for all borrowers. The home loan interest rate available through Bajaj Housing Finance Limited thus promises to make the endeavor cost-effective for all. Borrowers can now easily cut down on their outgoings without compromising on their affordability. Borrowers with variable income need not feel the pinch of increasing their debts.

All the major lenders like HDFC, ICICI Bank, Bajaj Financial, ING etc are in the loop, as far as the refinancing of loans is concerned. They are in constant touch with Bajaj Housing Finance Limited for refinancing purposes. Borrowers can contact any of these lenders and can approach them directly for obtaining the latest current home loan interest rates. However, those who prefer anonymity can log on to the internet, browse through various websites of these lenders and collect all the information required by them. Once this information is in hand, it becomes very easy to compare various quotes of these lenders.

The national average of the interest rates charged by these lenders on the current home loans is slightly higher than that of the prevailing interest rates. This is mainly because the lenders who are in regular competition also charge slightly higher interest rates. But the scenario is gradually shifting and most of the lenders are adopting a ‘one-size-fits-all’ approach and providing the same interest rates to all customers. Thus, competition has strengthened and has made the situation more stable.

Home improvement loans, especially the home improvement loan from banks, are now easily available to borrowers due to intense competition among the banks. The banks offering these loans are aware that they will have to provide these loans on the long run and hence they offer them at higher interest rates. However, there is still some room for negotiation and the borrowers can still find the best deals. Home improvement loans, especially from the banks, are also ideal for borrowers who do not want to commit for a fixed term period.

The homeowners who are looking for the lowest emis should consider the options offered by the banks. Mortgagees offer two types of emis; fixed and variable. Fixed emis remain same for the entire duration of the home improvement loan tenure and for the first few years of the loan tenure, the borrower can lock the interest rates provided for the home loans in this category. Thus, there is no risk involved but if the value of the property fluctuates, the borrowers can opt for the variable emis wherein the rates of interest are flexible and could be adjusted according to changes in the market.

For the first few years, fixed-rate loans offer minimal savings on the borrowers’ part. But after a few years, the annual interest costs start growing rapidly and they start coming out of their comfort zone. Hence, it is advisable to lock the loan deal for the entire tenure to enjoy the benefits at minimum cost. However, the adjustable-rate loans allow borrowers to shift to a longer loan tenure and the initial costs of locking in the loan tenure may be costly.

The lenders also vary in their home interest rate policies. Some lenders allow borrowers to pay higher down payments while some others allow a lower down payment but charge higher interest rates. Thus, it is advisable to do extensive research and compare different home loans and choose a plan that suits your needs and requirements. It is better to discuss home interest rate plans with various lenders and choose the one that offers the lowest home loan interest rate with maximum security and flexibility for you.