If you’re aiming to take an equity credit line, this can be a positive time to require the plunge. But do remember to own a repayment plan in situ to avoid any financial stress later.
Equity credit line interest rates are trending at the bottom with rates starting at as low as 6.4%. This is often because many banks have benchmarked their lending rates to the RBI’s repo rate after October 2019.
Those banks that haven’t linked their lending rates to repo rates also are offering low rates to remain competitive. Besides, many banks across the country have also extended festive season equity credit line offers to draw in prospective borrowers.
Many popular private and public sector banks are offering other festive offers still like waiving off processing fees or doing away with the excellence of rates for salaried and non-salaried. This makes it an excellent time to choose a loan.
Existing home equity loan borrowers may make use of this low-interest rate regime and switch to banks offering lower rates. That being said, it’s important to notice that banks have linked their festive offers with a borrower’s credit profile.
So, if your credit score is below 650, you will find it difficult to urge a loan. As an example, a prominent public sector bank has announced that borrowers with a credit score above 800 can get home loans at a 6.7 percent rate, in line with Bank Bazaar.
There are quite 20 banks and housing finance companies that are offering loans under 7 percent currently. So, if you’re attending to take an equity credit line, this is often a good time to require the plunge.
But do remember to own a repayment plan in situ to avoid any financial stress later. If already servicing a home equity loan and are within the first phase of the tenure, you’ll consider refinancing and switching to a lower rate to chop back your interest payment burden.
Do note that the speed applicable to you will be higher hoping on your age, gender, income, credit score, loan amount, property value, LTV ratio, or the opposite terms and conditions laid down by your lender.
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