Due to the soaring prices of property, home loans growth witnessed a downslide in February. To rein inflation prevailing in the Indian market, RBI had to hike its lending rates several times during the last year. The impact was directly seen on the home loan interest rates as banks have been hiking the interest rates at regular intervals.
Apart from the soaring interest rates, the other main factor that hampered the home loan growth is the high real estate prices. During the last few years the property rates have increased many folds.
A State Bank of India official said “Growth has been impacted due to high real estate prices and high interest rates.”
Many of the customers are happy to wait for now as they are hoping that the rates will stabilize. The Vice President of Angel Broking Mr. Vaibhav Agarwal said “Housing Loan demand will return. There could be some stagnation for a few months, but in the long-term it shall grow.”
No comments:
Post a Comment