The judgement of the Reserve Bank of India (RBI) to rise repo rates by 25 basis points, indicating alteration within the interest rates, might build all loans together with home loans costlier, however the revision of housing loan limits for priority sector loaning (PSL) from existing Rs 28 lakh to Rs 35 lakh may lead to reduction in the interest rates on home loans up to Rs 35 lakh.Banks tend to lend sharply to those priority sectors wherever default rates area unit low. The revision of housing loan limits for priority sector loaning from existing Rs 28L to Rs 35L could result in a discount in interest rates on home loans of up to it quantity in metros.
In its policy call, RBI, so as to present a bonus to the cheap housing for the Economically Weaker Sections and Lower financial gain teams, it set to revise the housing loan limits for eligibility from existing Rs 28 lakh to Rs 35 lakh in metropolitan centers, and from existing Rs 20 lakh to Rs 25 lakh in alternative centers, provided the price of the living accommodations unit within the metropolitan centre and at alternative centers doesn't exceed Rs 45 lakh and Rs 30 lakh, respectively.
Anuj Puri, Chairman - ANAROCK Property Consultants- aforementioned that the choice to extend the limit would be a giant boost for the first-time home buyers who are looking to buy properties within the cheap section. Besides obtaining grant advantages of Rs 2.68 lakh from the central government beneath schemes like Pradhan Mantri Awas Yojna, owning a house within the metros can presently become a reality for several.
As banks have to lend around 40% of its total loan to priority sectors like micro enterprises, borrowers from weaker sections, and agriculture sectors among others where default rates are high, they (banks) tend to lend aggressively to those priority sectors where default rates are low. The default rates in housing loans in the range of Rs 10 lakh to Rs 35 lakh is comparatively low. Therefore, bankers say the RBI's call would prompt banks to lower rates on little price ticket home equity loan section to extend market share.
In its policy call, RBI, so as to present a bonus to the cheap housing for the Economically Weaker Sections and Lower financial gain teams, it set to revise the housing loan limits for eligibility from existing Rs 28 lakh to Rs 35 lakh in metropolitan centers, and from existing Rs 20 lakh to Rs 25 lakh in alternative centers, provided the price of the living accommodations unit within the metropolitan centre and at alternative centers doesn't exceed Rs 45 lakh and Rs 30 lakh, respectively.
Anuj Puri, Chairman - ANAROCK Property Consultants- aforementioned that the choice to extend the limit would be a giant boost for the first-time home buyers who are looking to buy properties within the cheap section. Besides obtaining grant advantages of Rs 2.68 lakh from the central government beneath schemes like Pradhan Mantri Awas Yojna, owning a house within the metros can presently become a reality for several.
As banks have to lend around 40% of its total loan to priority sectors like micro enterprises, borrowers from weaker sections, and agriculture sectors among others where default rates are high, they (banks) tend to lend aggressively to those priority sectors where default rates are low. The default rates in housing loans in the range of Rs 10 lakh to Rs 35 lakh is comparatively low. Therefore, bankers say the RBI's call would prompt banks to lower rates on little price ticket home equity loan section to extend market share.
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