Home loan is not the cheapest in 16 years due to huge discount in interest rates

The real estate sector is seeing new hope in the festive season due to the huge discount in interest rates on home loans. The real estate sector believes that this festive season can prove to be a ‘turning point’ for house sales. At present, the interest rates on home loans have come down to less than 7 percent. Many banks are also giving loans at the rate of 6.5 percent. Such home loan interest rates were seen during the year 2002-04. Due to the reduction in the interest rate, the EMI has come down considerably and new buyers in this new market.

Rajan Bandelkar, President of, National Real Estate Development Council, said that at present most of the banks are giving home loans at the rate of 6.5 to 6.8 percent. The EMI per lakh on a home loan starts from Rs 757 to Rs 15,140 for a loan of 20 lakhs. This amount is only around the average monthly rent of two rooms in Delhi-NCR.

Bandelkar said that due to these attractive rates, inquiries about homes in the real estate market have become very fast and many people are also buying houses. He said that the real estate sector is expected to witness much better sales in the festive season.

According to Dhruv Agarwal, Group CEO, Makaan.com and Housing.com. This festive season could prove to be a ‘turning point for the real estate sector, given the historic fall in home loan interest rates and a strong recovery in the economy. He added that the festive season sales momentum is likely to continue in the coming quarter as well.

Along with the reduction in corona, the rapid increase in vaccination is also expected to give a sharp increase in sales to the real estate sector. Manoj Gaur, CMD, Gaur Group, said that since the fall in the corona infection, the interest of both buyers and investors in the real estate market has increased, keeping the interest rates at this low level will benefit in the festive season.

Comments are closed, but trackbacks and pingbacks are open.