Hello members!

You must have across the news reports on banks pruning home loan interest rates in the recent times.

If we take these movements in a broader perspective, the loan rates that are cut by some 50 basis points for now are bound to slash further more.

Reasons-The banks are under pressure as their rate of growth is declining due to slowing demand in home loan segment. The impact is apparently there on their revenues.

-The inflation has come to the levels of 3-4 per cent from 5-7 per cent prevalent in March-May.

-The RBI can also think to intervene as its measures to control inflation have worked and so forth market liquidity can be enhanced.

-On GNP (Gross National Product) front, slow down in real estate consumption can impact the sector that is playing critical role in the economic development of the country. The investment inflows from foreign entities will also reduce if corrective measures are not introduced in time.

So, I advise you to wait till December if you are interested in taking home loan. For the time being banks will try to use the festive season and push some lucrative schemes.

But if you hold some more time, chances are that the interest rate cut will be much more than that of near future.

All the Best..!
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  • Fed has taken charge

    i don't abt RBI bt the Fed Reserve has suitably cut interest rates to boost their ailing housing sector and prevent their economy from recession...RBI may or may not take cue from it..........
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