When you hear the name Mumbai, the first thing that comes to your mind is its financial supremacy in the country as it is also the financial hub of India. As it lies on the coastal boundaries/outline, it is surrounded by beaches and the Arabian Sea. The city is a great place for people who are looking to kick-start career, as there are many multi-national companies of every field. The education in Mumbai is revered and recognised all over the world. Mumbai is also said to be the headquarters of the film industry of India, i.e. ‘Bollywood’.
Due to all these reasons, Mumbai is known as ‘the city of dreams’, but if you wish to live here, you have to pay a hefty price. As the city has its iconic image in the entire country, it also has high housing rates that are beyond the affording capacity of many people. If you belong to that class of the society where a lakh rupee is a mere payment, then buying property in Mumbai might not be a hassle. On the other hand, if you belong to that class of the society wherein a lakh rupee can mean a lot, then the only option that remains for you is by applying for a Home Loan in Mumbai.
There are many banks and financial institutions in the city of Mumbai that you can apply for a housing loan through any lender, but if you are aiming to get a Home Loan in Mumbai that has a low-interest rate then here are the things you need to keep in mind.
1.Negotiate for the interest rate: The policies and rules for the functioning of the banks are set by the Reserve Bank of India (RBI). Any changes made in policies by the RBI is to be implemented by the banks. The same goes for Interest rate; the RBI sets the repo rates for the banks. The Repo rate (also called base rate) is a limit below which the lender cannot provide a loan to any applicant. But the lenders set the interest rates for the loans a bit higher than the base rate. If you manage to negotiate the interest rate, the lender might offer you a loan with a slightly lower interest rate than the others.
2.Apply during festivals: There are lenders that offer a Home Loan with a lower interest rate during the festive season. Since festivals are considered to be auspicious, and people buy a lot of things during this time, the lenders try their best by lowering down their interest rate as low as possible to attract more customers. Hence, applying for a housing loan at the time of festival can be beneficial.
3.Through government schemes: The government is taking a lot of efforts to ensure that everyone has a roof over their heads. They have introduced many schemes to make the home purchase less costly. In the past, there was a scheme launched by the government that waived off a bit of the interest percentage and made the housing loan a lot cheaper for you.
You can use the above-mentioned ways to get the lower interest rates on Home Loan, or you can take the help of Non-Banking Financial Companies (NBFCs) that offer lower interest rates than the banks.