How To Get The Best Interest Rate on Home Loan for Doctors?
According to recent studies, housing credit growth is predicted to increase by 17-19% in 2019. This growth in the housing sector is a direct result of multiple government incentives like the Pradhan Mantri Awas Yojana that strives to boost the residential real estate sector.
However, the substantial investment required to purchase property often takes a toll on the personal budget of individuals. This is truer for medical practitioners who already need to spend considerably in establishing/expanding their business. Thanks to home loan for doctors by leading financial institutions that resolve this issue since they come with convenient features like high credit amount, easy balance transfer facility, etc.
Doctors can apply for such home loans to have access to substantial funds against hassle-free terms. On the other hand, one should look out for ways to mitigate the interest rate charged. This ensures that the EMI amount is considerably low and convenient to be repaid.
Tips to help lower the interest rate on home loan for doctors
A substantial share of the income of medical practitioners is spent in purchasing/leasing clinic space, renovating the clinic, hiring skilled staff, purchasing imported medical apparatus, etc. Following this, there are lesser funds available to buy residential properties. This is where home loans come to aid. Its convenient step-by-step application process along with nominal eligibility criteria adds on to its benefits.
Lenders look into several factors before they lend the requested credit amount. These factors decide the borrower’s creditworthiness and the interest rate to be charged. Here is how one can have access to low-interest rates –
- Choose a shorter tenor
Borrowers should always prefer to go for shorter tenors since this promotes the creditworthiness of an individual. Thus, lenders are more willing to provide credit at a lower interest rate.
- Opt for easy transfer to lenders offering a lower interest rate
In case the current home loan with a financial institution is yielding more interest rate, one can always opt to go for balance transfer facilities. Reputed NBFCs like Bajaj Finserv offer Home Loans for Doctors that come with easy balance transfer facility. Additionally, they also offer lucrative features like-
- A flexible tenor of up to 18 years.
- High-value top-up loans.
- Property dossier.
- High credit amount of up to Rs. 2 crore.
- Pay more as down payment
Borrowers can always opt for higher down payments while obtaining a home loan for doctors. It helps reduce the principal amount; and lowers the EMI payments and the interest rate charged on it.
Additionally, one needs to maintain a high credit score (750+), to have access to a higher credit amount at a lower interest rate. A higher credit score reflects the creditworthiness of an individual, and this makes the lender more willing to provide credit at a comparatively lower interest rate.
Doctors can also attempt to pay off an extra EMI in case they happen to have some surplus amount. This is substantially effective in lowering the interest rate spread across the tenor.
With such tips, one can avail customised loans for doctors, which can be used to purchase a residential property or refinance an existing home loan. Additionally, doctors can draw multiple benefits from a loan against property apart from a home loan.
Avail the hassle-free home loan for doctors from leading financial institutions like Bajaj Finserv, which comes at attractive interest rates. The lender requires minimal documentation that includes – medical registration certificate, papers of the property to be mortgaged, KYC documents, and P/L account statements, IT returns, the balance sheet of the last 2 years.
