HDFC Increases Home Loan Interest Rates Read More. Several house loan lenders, including HDFC, ICICI, Bank of Baroda, RBL, and Federal Bank, hiked their home loan interest rates a day after the Reserve Bank of India raised the repo rate by 50 basis points to combat rapidly rising inflation.
HDFC, one of the country’s largest lenders, announced on Thursday that its lowest home loan rates would start at 7.55 per cent, up from 6.7 per cent in March. ICICI’s lending rates will now start at 8.6%, while RBLs will begin at 8.55%. Existing floating-rate home loan EMIs will also rise. How can you keep your EMIs to a minimum?
HDFC Increases Home Loan Interest Rates
Those who want to keep their EMIs low have a variety of options. Refinancing a loan is simple for a consumer. Many lenders offer lower rates than those offered by borrowers’ current lenders. Borrowers can readily move their loan to a lender with reduced interest rates.
Almost every lender provides this service. On the other hand, refinancing is effective if the borrower still owes a significant loan. There are also fees linked with it.
HDFC Increases Home Loan Interest Rates Prepayment is another option available to the borrower. Prepayment is available from all lenders. Borrowers should continue to pay off the money in lump sums to reduce the principal over time.
EMIs are lower when the principal is lower. This also implies that a person’s loan will be paid off sooner. Prepayment makes a lot of financial sense because most of the EMI is interested in a tiny principal component.
Most institutions provide loans with terms of up to 30 years, and the most common loan repayment period chosen by borrowers is 20 years. If a person wants to reduce her EMIs, she might extend the loan’s term.
The disadvantage is that she will have to pay a higher interest rate. However, this also entails freeing up resources. If paying a higher EMI is not a concern, a cautious person can increase her monthly payments. This would allow her to repay the debt faster, resulting in lower interest payments.