Festival offers on home loans: Avoid teaser rates that reset after months
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar pointed out that lenders also waive legal and valuation charges and offer loan-to-value ratios of up to 90%. He said lower spreads over MCLR or repo-linked rates are preferable to teaser rates, noted that many offers need a high credit score, and suggested keeping total EMIs within 35% of take-home income.
More of Abhishek's views on debt and loans
The article examines festive season home loan offers, such as processing fee waivers and special rates that may reset after a year or two. It explains why a lasting rate discount tends to matter more than a one-time waiver, how daily and monthly reducing balance methods affect interest, and what borrowers should compare across lenders.
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Festival offers on home loans: Avoid teaser rates that reset after months