Home Loan interest rate game

[bhaviks]

As far as I understand, banks when giving out Home Loan under RLLR, charge an interest rate that is a combination of the current repo rate and their spread (which includes a risk premium based on the borrowers profile). For a new borrower, with no credit history, this risk premium might be on the higher side, resulting in a higher overall interest rate for the loan. However, after diligently paying the Home Loan EMIs for 2+ years (for a 20 year loan), the credit profile of the borrower would have definitely improved. The person is a much less risky borrower for the bank now. Do banks automatically reduce this risk premium on their end for this borrower? Can a borrower push for it?

 

[helloworld]

One rule for any banking product:

There is no single rule to make us stick to it. Anything can be done in financial world, as long as we have right contact, and other person doing properly along with supported credit profile.

 

[jafar]

One rule for any banking product:

There is no single rule to make us stick to it. Anything can be done in financial world, as long as we have right contact, and other person doing properly along with supported credit profile.

Absolutely agree...Flexibility is key in finance. Having the right contacts and a solid credit profile definitely opens doors. It's all about navigating the system effectively and leveraging the right connections.

 

[Shin-Chan]

There is nothing which is non negotiable with the banks using "shaam, daam, dand, bhed" judiciously can get you anything within feasibility of banking system