IT professional Bhuvan Sharma, works with a multinational company in Hyderabad.

Within a few months of moving there, he decided to buy an apartment in the city.

Lucky for Bhuvan, a friend tipped him off; he could negotiate with banks to bring down the rate of interest on his home loan by 0.5 per cent. If he wanted a personal or car loan, smart negotiation could bring it down by 1-1.50 per cent!

So, Bhuvan negotiated with his bank and did manage to bring it down by 0.5 per cent. This is how he did it.

Step 1: Brought down the rate of interest

Bhuvan produced his income statement and assured the bank of his repaying capacity. Since he was employed with a reputed company and earned a stable income, he scored some brownie points there.

Smart tip: You can try other options like putting in more of your own money or getting a co-applicant.

Step 2: Negotiated for less initial fees and charges

Many banks offer an attractive interest rate but fleece you by charging high fees! Bhuvan asked for the lowest initial fees and charges, possible.

Smart tip: You can do the same. But the final figures depend on your income.

Read: Too broke to pay off your loan?

Calculate: How soon you can pay off your debt

Photograph: Mark Wilson/Getty

1 | 2 |  

e-mail: Ketul Shah

Suggest a story idea! Write to us!