A commercial bank like AU Small Finance offers a great deal for your land purchase. You can construct a new house in the desired area by buying land on it. Or if you have selected the property and just looking for the right financing tool, then take a home loan from AU Small Finance Bank. Because they provide a minimum loan of INR 2 lakh with up to 75% of your property cost. Read this article to know about the AU home loan interest rate on the borrowed amount and its benefits on loan payment.
The AU home loan interest rate is floating, is this good or bad?
Home loan interest rate charged on the loan from two different types, one is fixed and the other is floating. And, the AU Small Finance Bank home loan interest is floating so here the benefits of floating interest rates are discussed. First, the user can get the advantage of flexible equated monthly installments. Yes, with the AU home loan interest rate you can reduce the EMI of your borrowed amount via prepayment.
The bank does not charge a prepayment fee from the user if he/she directly pays the amount without any 3rd party source. Otherwise, 5% of the outstanding loan is charged as a prepayment fee if you pay the loan before 12 EMIs.
Which factors decide my AU home loan interest rate?
AU Small Finance bank charges the interest rate on the loan amount based on the user income, age and other loan eligibility criteria. The AU home loan interest rate starts from 12.50% per annum and can be up to 22.00%. So look at the below-mentioned factors which can help you get the desired rate of interest on your home loan.
CIBIL Score: The bank checks the applicant credit history before the loan approval and charges the interest rate accordingly. A CIBIL score of 700-800 will make you an eligible applicant, while below 700 the interest rate could not be decided by your demand. So if you want to get a home loan from AU Small Finance Bank then make sure your score is equal or above 700.
Age: Your age should be 18 years during the loan sanction or maximum 75 years till the loan maturity period. It is because between the age period you are eligible for the loan payment along with the interest rate whether you are salaried or self-employed.
Income: The prominent reason for your AU home loan interest rate is the income. AU bank decides the rate of interest based on your monthly expenditure. Because it gives them an approximate calculation of your loan credibility. And, if your income does not meet the criteria then you can add a co-applicant to make land purchase easier.
Apply for a home loan from AU Small Finance Bank!
To get a loan for the purchase of land, go to the bank nearest branch or apply for a loan using the online service. Just click on the “Apply Now” button to easily make the first step for the purchase. Enter your name, mobile number and email with the code to complete the first procedure. And, if you are eligible for the loan you can submit the documents and charges required for the process. Which includes a processing fee that is up to 2% of the loan amount and some other legal charges for the property. So now worry free and finance your house with an attractive AU home loan interest rate.