The New Year has started with the best possible news for home buyers! Some of the leading banks in the country, including State Bank of India, lowered their borrowing rates by up to 90 basis points. Because of the banks’ decision to reduce interest rates, the home loans rates will fall down to their lowest point in the last six years.
And this is what some of the leading experts from across the country have to say to us on this extremely fortunate news:
“Good news has started coming for housing and construction sector. Interest rates cut by all the banks will lead to demand being raised substantially,” DLF CEO Rajeev Talwar told PTI commenting on the lowing of interest rates. He went on to add, “If project finance is also extended by the banking sector and moratorium on repayment of principal is also allowed, then there will be a huge jump in the number of projects being completed and new supply coming into the market”.
So, it looks like this is the time to fast track any buying decisions that you have kept pending, because clearly, lots of people are going to start buying real estate now.
Property consultant JLL India Chairman and Country Head Anuj Puri said: “Banks have brought down the interest rate significantly. That will definitely help in improving the sentiments as well as purchasing power in the hands of home buyers. An initiative like this will help in improving the demand in residential segment across various cities”.
Sentiment is the key thing in the real estate market. And the most important impact of the lowering of interest rates is that sentiments are going to become positive. Lots of people who are feeling positive translates into a healthy, happy real estate economy. Long story short? Now is the time to buy, before, once again, it gets too late.
Online realty brokerage firm PropTiger Chief Business Officer Ankur Dhawan said: “It is one of the best gifts industry could have got in the new year. This is one of the largest cuts in interest rates we have seen in the recent past and will improve eligibility of home buyers significantly”.
So, this is simply what is going to happen because of the rate cut – more and more people are going to become eligible for home loans. All those who had had to postpone their real estate decisions because they were simply not getting home loans will now be in the market. End result? Demand will boom.
Besides SBI, other lenders like ICICI Bank, Kotak Mahindra Bank, Dena Bank, Bandhan Bank, Andhra Bank and Oriental Bank of Commerce have slashed MCLR. Yesterday, PNB and Union Bank of India had also reduced the lending rate.
Here is a list of banks and their new home loan interest rate:
SBI home loan interest rate: 8% from 8.9%
Union Bank home loan interest rate: 8.65% from 9.3%
IDBI Bank home loan interest rate: 9.15% from 9.3%
SBT home loan interest rate: 9.2% from 9.45%
IOB home loan interest rate: 9.15% from 9.5%
PNB home loan interest rate: 8.45% from 9.15%