Home is one of the most basic needs of an individual living in a country. But due to the inflation and soaring prices of real estate, not everybody can purchase their homes by paying full installment in one go. That’s why there are so many banks, Non-Banking Financial Companies (NBFCs), and Housing Finance Companies (HFCs) that provide home loans to their customers. State Bank of India (SBI) is one of the leading lenders of our country and several people opt for its loan facility due to the affordable SBI Home Loan Interest Rates.
Interest rate is one of the most important aspects of the home loan facility as home loans are generally considered to high-ticket purchases and taken for a long period of time. Many people don’t consider before opting for a home loan rate and they regret it later. In this article, we will tell you about some of the factors that affect SBI Home Loan Interest Rates so that you can know exactly how this works. Other than this, you will also get to know how does SBI Home Loan EMI Calculator works and what is the role of interest rates in it. So, keep reading!
Let’s know these factors in Detail
All of the factors that affect SBI Home Loan interest rates are mentioned below. Have a look!
Credit Score:- SBI Home Loan Interest Rates are decided by the Credit Score of an individual. So, an individual with a good credit score can opt for low SBI Home Loan Interest rates. A good credit score indicates the creditworthiness and repayment behavior of any individual.
Property Location:- Do you know that the location of your property for which you are looking to get a home loan can decide your interest rates? Well, the answer to this question is yes. Lenders check the location of your property before deciding the interest rates. So, if your property is at some prime location with all the amenities nearby, you can get low SBI Home Loan Interest Rates. On the other hand, if your property is located at some remote place with no amenities nearby, you may have to pay higher interest rates on your home loan facility.
Loan Amount:- The required loan amount is one of the important things that you must know. Loan amount directly impacts your interest rates. Lenders may charge you higher interest rates if you are opting for a higher loan amount. But it is something which is not necessary like if your property is at a prime location and you have a high repayment capacity, the lender will not provide you the loan amount at higher interest rates. But there are definite slabs of interest rates according to the loan amount and Credit Score.
Monthly Income and Existing Obligations
Your income can also affect your home loan interest rates. An individual with high income and low obligations (such as personal loan EMI, Car Loan EMI, etc.) can get affordable SBI Home Loan Interest rates as compared to an individual with low monthly income.
How does SBI Home Loan Interest Rates determine your EMI amount?
Do you know that SBI Home Loan Interest Rates directly impact your EMI amount? Well, yes. Higher the SBI Home Loan interest rates, higher would be the EMI amount. You can know this by yourself by using the SBI Home Loan EMI Calculator. Just put two different interest rates for the same home loan amount and tenure. You will be able to see the huge difference when you choose the higher interest rates. This efficient tool helps in calculating the EMI amount instantly. Other than this, you will also be able to know the interest outgo and the total amount payable. You can also have an estimate about your EMI amount before deciding the final home loan amount according to your repayment capacity.
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