How to make your home loan interest-free

by Ajay Singh Financial Advisor

A home loan is the easiest way to get a home. It turns your dream into reality within a few seconds. If you need a home, you will get the best help from a bank or a non-banking financial institution. The goal should be getting an affordable home loan. When you get an affordable home loan, it becomes a burden-free borrowing experience for you. You can now make your home loan low by meeting the eligibility criteria. It is not possible to get an interest-free loan such as a home renovation loan or house repair loan, but what you can do is invest your money in mutual funds and get good benefits. On the other hand, you can get a low rate of interest if you need an affordable home loan. For that, you need to have a good eligibility criteria. This will help you meet all your expenses, keep up your credit eligibility, and get the lowest-cost loan.

Your credit score: What's your credit score? A good credit score is mandatory. As per the Experian credit score, a good score is always above 750 and you must maintain it. It gives a complete insight into your credit activities and financial behaviour in the past. A credit score helps you to judge your creditworthiness and ability to handle debt repayment. A good score is always a good way to impress your loan provider for a low rate of interest. With banks, it is always a good credit score that gets half the approval work done.

Monthly and annual income: A loan provider would never want to invest in a borrower that is not capable of repaying the loan. So, when you are applying for a personal loan, make sure your income is stable. That is good for you as well, as the burden will be less with a stable income. Banks will surely determine the capacity of your income to meet fixed obligations, ongoing debt and new debt. If it is found out that there is little to no space for a new debt, you will be getting a denial. Make sure you work on your income before you apply.

Employment history: For various banks and reputed non-banking financial institutions, employment history is a good way to gather insight into a borrower’s credit behavior. For most individuals, it is always a job that they draw their income from. The banks would surely want to know if your employment is stable or whether you could lose your employment at any time for any reason. This is important because if you lose your job, you will not be able to repay the loan, so this factor is considered by every bank.

Ongoing debt: If you have ongoing debt, your approach towards a new loan should be different. You must consider closing one loan to take up a new one. Managing multiple loans at once can be emotionally and financially draining.It becomes a burden to dedicate a good amount of money to paying EMIs each month. This will also put an impact on your daily expenses and fixed obligations like rent, utility bills and other miscellaneous expenses.

Basic eligibility criteria: when you approach banks for an instant loan online, you need to meet the eligibility criteria. The basic ones are age, citizenship that you need to fulfil. Anyone below 21 years old cannot take a loan without the support of an adult. Also, to get a loan, you must be a citizen of India.

Finishing up

For a house repair loan or a home renovation loan, you must always need Clix Capital. The affordable and online borrowing experience will help you explore the best borrowing experience. It will allow you to achieve the dream of having your own home.