Want to buy a Home Loan in Pandemic? Here you can Apply Home Loan at Best Interest Rate

The Covid-19 pandemic has disrupted the global economy at an unprecedented scale. Household incomes have been hit on account of low business activity. The aftermath of this pandemic situation has established the fact that owning an apartment is way better than dealing with the uncertainties of living in rented accommodations.

Many people have also realised the importance of having real estate as an asset in their investment basket, that offers a lot more steady returns compared to highly volatile stocks with heightened risks. But gathering funds for such assets can be difficult, seeing how incomes have been impacted by the pandemic. Opportunities don’t come knocking on your door very often. But, when they do, you ensure that you are ready to optimise it to the fullest.

How Can Home Loans Help?

The Reserve Bank of India cut the repo rate substantially, which came as a blessing in disguise for potential homebuyers. Repo rate is the rate at which the RBI lends money to the lenders to offer its customers. The reduction in this rate allowed lenders around the country to offer loans at newly reduced rates, making home loans even more attractive.

Homes loans, being a long-term commitment lasting for over 20 years, have two components - the principal amount that you borrow and the interest you pay above and beyond. Even a minor reduction in the home loan interest rates can result in a significantly lower overall loan amount that you are liable to repay in the long run.

A reduced interest rate on home loans also allows for considerable savings while creating an asset for end-use or investment purposes. You can also use the savings resulting from a reduced EMI to avail a top-up loan amount, which can also be available at lower interest rates.

A lower interest rate also gives borrowers an option to raise a higher amount of loan. This helps widen the choice in terms of a bigger home with better amenities and lifestyle facilities in a prominent neighbourhood.

How To Apply For A Home Loan?

Before you approach a lender to apply for a loan, take a step back and evaluate your options. Shop around, negotiate for better rates or longer tenures. This will reduce the financial burden you will have while you are paying the EMIs. Compare lenders and the features they are offering on housing loans, and get a deal that works best for you. When you are offered a lower interest rate, you can consider going for a higher loan amount. This will help widen your selection of homes you can choose from.

Should You Even Buy a House Right Now?

The pandemic has shown us exactly what we need and what we can easily do without. Investments to fall back on and a house of your own are clearly among the most important things you need to survive. With the government reducing the interest rates on home loans, and the temporary dip in real estate prices, now is the time to explore your real estate investment options. Find out more about the right home loan options for you today.