NEWS & ADVICE : HOME LOANS
Home loan industry on the revival path after rate cuts
By Joseph Samson
Oct 18, 2007
Print    Email    RSS   

New Delhi: The recent home loan interest rate cut by various banks has started showing results. Things are now picking up in the residential real estate segment. Builders and financial institutions have started receiving enquiries once again, after a long drought.

Sanjiv Srivastava MD Assotech said, "There is a clear change in trend in the last couple of weeks. Many who had dropped the idea of buying an apartment after the interest rate hike in January 2007, want to complete the deal now."

Many banks like HDFC, IDBI, SBI, ICICI, Axis Bank, Canara Bank, Bank of Baroda, Bank of India had slashed their interest rates on floating rate home loans to tap the festive season. In addition to the cut in interest rates, banks had also organized special fairs, offered discounts on processing fees to lure in more customers. The hike in floating rate home loan during the past few months had dried up their business and forced the banks to offer discounts despite no such indications by RBI.

The recent demand for new home loans is mostly for the non-premium segment - that is for apartments costing around 50 lakhs. The premium segment is currently facing a peculiar oversupply situation and is not witnessing too many enquiries.

Hemant Jain Director, KLJ builders said, "The group's ongoing residential projects in Faridabad Nahar Paar area, Bahadur Garh and Gurgaon are receiving a good number of enquiries." The availability of home loans at low rates is expected to act as a catalyst and revitalize the sagging home loan industry.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Save tax with ELSS
Home Loans come with Tax Rebates!
Tax Deduction on HRA (House Rent Allowance)
Bank loans that could glitter for you
Home Loan Agreement: An important aspect...


PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive