Home buyers can look for cheaper deals
By ENS Economic Bureau - HYDERABAD
30th January 2013 09:01 AM
Home loan borrowers — so far burdened with high interest rates and inflation — can now breath easy, with the Reserve Bank of India slashing repo rate by 0.25 basis points. The realty sector says it is a positive step that would boost housing demand and encourage foreign investment in the sector.
The move will prompt both public and private banks to pass on the benefit to consumers.
For instance, if you have borrowed at a floating interest of 11 per cent, you’ll now have to pay `895 per month for every one lakh as opposed to `916 per month for every one lakh.
Gaurav Mittal, MD, CHD Developers said, “Home loans may get cheaper facilitating the buying decision of the consumers.”
“This is a positive move and hopefully will reduce interest rates marginally, which will help the real estate industry,” said Anshuman Magazine, South Asia CMD, CBRE.
However, trade body Credai said the repo rate cut by 25 basis points was ‘just not enough.’
“What we need is creation of a robust supply to curb inflation, for which RBI needs to continue to ease fund supply position, month-on-month and quarter-on-quarter for realty sector,” said Lalit Kumar Jain, National President, Credai.
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