Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Here Are Six Ways to Save Money On Your Home Loan

Loan for Home

Here Are Six Ways to Save Money On Your Home Loan

Here Are Six Ways to Save Money On Your Home Loan

Buying a home is a dream for many. It is a sense of security to some. It is continuity in the same abode for others. However, the cost of realising that dream can prove a costly affair. But don’t fret just yet. If you are considering taking a home loan or servicing one already, there are assured ways of making your loan more affordable.

Wondering how to reduce your home loan obligations? Here are six ways to get started.

1. Boost your credit score

Financial institutions will consider your credit score to evaluate your loan suitability. While a good score of 750 or more is desirable, even a score of 600 or above is not bad at all. You will still be in a better position to negotiate for better interest rate and terms, whether you’re taking a new loan or refinancing your existing one. However, make constant efforts to boost your credit score by paying your bills timely etc

2. Research well

Before signing off a loan deal, research all your alternatives. Take time to explore different loan offers and compare various lenders. Go for reputed entities. Consider current ROIs, processing fees, EMI flexibility, and other determinants. Do your research right if you’ve been searching for how to reduce your home loan EMI. It is possible you might come across competitive offers by the time of actual house purchase, and that will help you save a lot of money. Make the best of this strategy.

3. Go for a balance transfer

A few months into your tenure, be mindful. You can consider going for a home loan balance transfer if the EMI outgo is hefty. You may find a different lender offering the option at a lower interest rate. If you transfer, you can save a substantial sum in the long run. Just ensure the cost of transferring the balance is not more than the savings. A home loan EMI calculator can help you with the computations.

4. Negotiate with the lender

If you want to know how to save interest on home loan, start with your lender.

Many borrowers are simply unaware that they can ask their lenders to reduce the interest rates or other loan terms. However, with high creditworthiness, you can negotiate for lower interest rates or better processing fees. Don’t accept the first or second offer you get. If you boast a good credit history, try negotiating and crack a better deal than being offered upfront.

5. Increase your down payment

When you pay a higher down payment, your overall interest payments and EMI obligation will be reduced. This is an important point to keep in mind. While most lenders ask for 20 – 30% of the total property cost as a down payment, you can pay more than the stipulated percentage. This will not only help you bring down the total loan cost, but may even get you a competitive interest rate.

6. Make partial payments

If you’re wondering how to reduce EMI of existing home loans, check if your lender allows partial payments. Check for the process and procedure to choose partial payment option. You can use the facility to reduce your burden in the long run. After all, you may have more cash inflow than your regular income during the tenure. It can come in the form of bonuses, gifts, sale of any fixed assets, and so on. Use this ain judiciously to reduce cost of home loans.

Conclusion

While a home loan might be a huge commitment, with the right measures, you can ensure it doesn’t bear heavily on your pockets. If you are looking for affordable home loan options, turn to Tata Capital.

Apply For Home Loan Now

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.