The lowering of interest rates on home loans has brought some encouragement among the homemakers with house loan seekers in the Valley expecting banks operating in Kashmir following the suit.

Restrictions put on the housing loan sector by the RBI during its last credit review had slowed down the housing loan market in the Valley.

However, a recent development in which three banks viz. HDFC, Bank of Baroda, and Allahabad Bank reduced the interest rates on home loans from 25 basis points to 50 basis points as a festival season offer, has generated a hope that banks operating in Kashmir may also follow the suit.

If the banks operating in Kashmir lower the interest rates on home loans, it will have impact on the multi players.

The small firms in Kashmir would get benefit if the major banks in Kashmir reduce the interest rates on home loans. There would be surely a positive impact on public at large.

If interest rate on housing loans comes down, it will have a favourable impact on the middle class in particular and common masses in general and thereby will increase the demand for real estate.
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  • Originally Posted by adilford
    Maybe things have at last turned favorable for us and people like me who were so worried when the inflation was at its peak that this could never happen. Anyways anything that happens has its pros and cons. Though some of us can afford to smile now I was just thinking if there are any cons of such rates going down for anyone else or to be precise for the interest of the others which may have got hurt just because of this.

    My feeling is, the ROI may come down to around 8.5% by March/April 09 and may be to about 7.5% by Sept.09. But the prices of decent flats in good localities in and around Chennai may not come down so steeply, may be 10 to 15 % range.