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Factors affecting home loans
by Finway FSC Empowering People FinanciallyIncrease in the prices of the property in every part of the
country, loans have become imperative. As soon as one collects a reasonable
amount of money, he/she plunges to get a loan for either investment purpose or
as an end-user. No matter what the reason is, factors that affect home loans
are the ones that determine the interest rates. Let us enumerate these factors
which can be controlled by the borrowers and some that the RBI has control
over:
Credit Score: The history of fiscal borrowing determines the credit score. In
case the score is poor the banks have the right to refuse the loan or charge a
high rate of interest. In some cases, when Home Loan in Delhi is rejected, people tend to apply in another
city; however, the credit score is calculated keeping in mind the
creditworthiness. Just like Business
Loan in Delhi, it is given against property is an example of safe loans
with a low rate of interest. This does not change with the change in
place. Nevertheless, if the credit score is good, you will benefit from
the good credit score that you have. The rate of interest levied will be as per
the prevailing norms.
MCLR Rates: MCLR is the yardstick with which the rate of interest is
calculated. Although the base rate exists, but the banks are no more using that
as a benchmark to calculate interest rates. Now the bans extend loan against
the prevailing MCLR. When this changes, the interest rate is bound to change.
The interest you were initially charged may increase or decrease depending upon
this rate as mentioned by the Governor of RBI. This does not imply or affect
the Business Loan in Delhi or another city.
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About Finway FSC 
Empowering People Financially
24 connections, 0 recommendations, 99 honor points.Joined APSense since, September 25th, 2018, From New Delhi, India.
Created on Oct 11th 2019 03:40. Viewed 530 times.
