After seeing the rise in property rates, I planned to make an investment in Bangalore. I called a real estate agent to help me figure out the investment roadmap. While discussing the process with him, I asked what is the interest rate for investment property. According to the agent, the interest rate in India for investment properties starts at 7%. He also said that this depends on quite a few factors.
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What is the Current Interest Rate for Investment Property?
As I mentioned above, the interest rate ranges from 7% to 10% and depends on a few factors, such as borrower credit/CIBIL score, loan term and defaults.
CIBIL Score
He mentioned the CIBIL score ranges from 300 to 900. The interest rates get better when this amount is higher. A person with a 740 or higher credit score can get good interest rates from lending institutes or banks. You can improve your credit score by checking it frequently and finding the correct method to make it better.
Loan Term
The loan term is another key factor as well. This is because banks and financial institutes offer higher interest rates to candidates who opt for longer loan periods.
Defaults
Banks are quite sceptical when approving loans for defaulters. Even if they approve, the interest rate is quite high. Defaulters are those who are not consistent with their repayment abilities and time.
And that’s all. The agent told me about the interest rate on an investment property. Hope this helps.
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What is the Interest Rate for Investment Property?
Namith
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6 months
2024-11-24T22:27:01+00:00 2024-11-24T22:27:02+00:00Comment
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