The repo rate rose by 250 basis points between May 2022 and February 2023, leading to increased equated monthly installments (EMIs) or extended loan tenures for borrowers.
Until rate cuts begin, borrowers can explore other options to lower their home loan burden.
Negotiate a rate reduction Banks and housing finance companies (HFCs) often agree to reduce the home loan interest rate for a one-time fee, especially for borrowers with a consistent repayment record.
This is offered to customers who are at a higher rate than the best rate offered by the lender.
"Lenders are often willing to lower the rate to the tune of 5-15 basis points as there is always a chance that home loan borrowers may opt for a balance transfer," says Raj Khosla, founder and managing director, Mymoneymantra.com.
A formal written request needs to be made to the lender for a rate adjustment.
Esta historia es de la edición December 13, 2024 de Business Standard.
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