Lenders use your credit score to assess your financial reliability. A high credit score (typically 750 or above) can qualify you for lower interest rates, while a lower score may result in higher rates due to perceived risk.

The requested loan amount can impact the interest rate. Larger loans may carry higher rates as they represent a higher risk for lenders, while smaller loans may sometimes offer lower rates.

Loan duration affects both interest rates and total interest payments. Longer tenures lower monthly EMIs but can come with higher interest rates due to the extended exposure to risk for lenders. Shorter tenures may result in more favorable rates.

Home loans offer fixed and floating interest rates. Fixed rates remain the same throughout the loan term, while floating rates vary based on market conditions. Floating rates often start lower but can fluctuate, impacting monthly EMIs.

Stable employment and a consistent income stream indicate financial security, making you a lower-risk borrower in the eyes of lenders. Self-employed or irregular income earners may face higher rates due to perceived unpredictability in income.

The Loan-to-Value (LTV) ratio is the proportion of the property value financed by the loan. A lower LTV (meaning a larger down payment) often results in better interest rates, as it reduces the lender’s risk. For instance, an LTV of 80% (20% down payment) may attract a more favorable rate than an LTV of 90%.

Having an existing relationship with a lender, such as an account, investment, or prior loan, can sometimes lead to preferential interest rates. Loyal customers with good standing may be offered competitive rates as an incentive for continued business with the lender.

Economic factors such as inflation, RBI policies, and overall demand in the financial market affect home loan interest rates. In times of economic growth, rates may rise, while during economic slowdowns, central banks may reduce rates to encourage borrowing.

The property’s location, age, and type can impact rates. Desirable properties in stable or high-growth areas may attract lower rates, while older properties or those in less developed locations might come with slightly higher rates.