Things to Remember While Opting for Housing Loan During This Festive Season

Home loans are much in demand during the festive season as it is the best time to grab the best offers and deals. Banks and financial institutions offer a low home loan interest rate, discounts and waiver of processing fees during this time, making it affordable for most borrowers. Besides, the festive season is also considered an auspicious time to purchase a new house or plot. However, there are a dozen things to be mindful of when opting for housing loan so as to not end up overspending during the festive season. 

6 Things to Keep in Mind When Opting for Housing Loan This Festive Season

Planning to buy home during festive season 2023? Here are a few points to consider before signing on the dotted line – 

  • Read the Terms & Conditions Carefully 

Before finalizing the home loan, borrowers must go through the fine print of the loan terms and conditions to avoid any future inconveniences. Many of the home loan festive offers include specific clauses pertaining to the borrower’s age and profession, credit score, a limit on the maximum loan amount and so on. Also, look for any hidden charges and make sure you understand the housing loan repayment schedule, monthly EMI cycles, and the charges involved. 

  • Compare Different Home Loan Interest Rate 

Housing loan benefits vary from one lender to another. As a borrower, you must compare all the loan features and benefits offered by different lenders. Look for cheaper interest rates, top-up loans, easy EMI options, and flexible repayment tenors. You should make an informed decision based on these attributes instead of falling for meaningless vouchers and gifts. Based on the rate of interest and loan tenor offered by the lender, you can calculate your monthly EMIs using a home loan EMI calculator and plan your finances accordingly. The lower the home loan interest rate, the lower will be your monthly installments. Therefore, check the varying rates and tenors and choose a plan that is best suited for you. 

  • Avoid Overborrowing 

While the festive season might seem like a good time to avail house loan, you should not indulge too as mindful financial planning is important for your monetary growth.  Take into account your monthly budget, expenses, existing financial obligations, associated home loan charges and repayment schedule into account before opting for housing loan. 

  • Avoid Taking Multiple Loans

Taking multiple loans at a time increases the chances of defaulting on them and consequently affects the credit score. This can further hamper your home loan eligibility in the future. Therefore, you should avoid applying for more than one loan at once. Instead, combine all your financial needs into one to manage your finances better.

  • Check If You Really Need It 

No matter how tempting these festive offers may sound, they should not be the sole reason for you to jump into buying a housing loan. Once you take out the loan, you will have to pay it off with the interest charged. So, the next time you plan on opting for housing loan, ask yourself if you really need it and whether you will be able to repay the amount within the given time. Besides, make sure you do not end up borrowing more than what you can repay. Choose a loan amount as per your repayment capacity to avoid falling into debt.

  • Be Mindful of Your Credit Score

If you are planning to take a home loan during the festive season, make sure your credit score is well above 750 because most lenders consider that the ideal score for home loan eligibility. Banks and financial institutions would certainly want to take a closer look at your creditworthiness before offering you the best home loan interest rate and other deals. 

Best Home Loan Offers to Lookout for During the Festive Season

The best deals on housing loans are offered for both new loans and balance transfers during the festive season. Whether you are a salaried employee or a self-employed individual, here are some of the best offers to enjoy when you avail house loan – 

Reduced Rate of Interest

During the festive season, many lenders slash home loan interest rate by 0.50% to 0.10%. Lower interest rates lead to cheaper monthly EMIs resulting in reduced cost of borrowing. For instance, if a bank reduces the interest rate from 7% to 6% on a loan of INR 50,00,000 for a tenor of 10 years, then the monthly installments to be paid will be INR 55,510 instead of INR 58,054. This means you could be saving INR 2,544 on EMIs every month. 

Zero to Low Processing Fees

Banks and lending institutions often choose to cut or lower the processing fees applicable to housing loans during the festive season. It helps reduce the overall cost of your loan. 

Waiver on Prepayment Charges 

Many lending institutions offer a waiver on home loan prepayment charges when taken during the festive season. These are the charges applicable when a borrower decides to pay off the loan amount before the end of the tenor. A waiver on the prepayment charges can further reduce the cost of borrowing.

Affordable EMIs 

Some financial institutions and banks decrease the number of EMI cycles for home loans taken during the festive season. For instance, if a bank waives off 12 home loan EMIs, it will save the total EMI amount chargeable for 12 months. However, in such cases, a loan prepayment facility is not applicable.  

Ease of Application

Different lenders make the loan application process easier during the festive season to get more borrowers applying for it. Once you have gone through the umpteen loan benefits and considered the various aspects associated with it, you can simply apply online for a housing loan that will only take a few minutes. 


Festivals are a great time to invest in real estate and purchase a new home. With the banks and different lending institutions slashing the rate of interest and waiving off certain charges, opting for housing loan during this time can become affordable for credit-healthy borrowers.

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