Wednesday, July 4, 2012

Interest on home loan could soften


Upward pressure on interest rates is not there. Housing finance companies have already cut lending rates by 25 basis points,” said the NHB chief who expects home loans to grow by 20% in FY13 as compared to 18% in FY12.
According to Mr. R.V. Verma, Chairman and MD, National Housing Bank, “housing finance companies should be outside the purview of the 5 per cent cap on bank loans to non-banking finance companies”. NHB plans to disburse Rs. 17, 500 crore as refinance in duration between July 2012-June 2012.

It also plans to securitize some portion of HFC loans, around Rs. 100-150 crore which will benefit HFCs to undertake fresh business and gain liquidity. The regulator and supervisor of HFCs will also be securitizing a portion of the disbursements it has made to HFCs and banks, said Mr. Verma.


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