Low Home Loan Interest Rate Remains Same: Realtors on RBI Policy

Per forecasts, the RBI maintained the country’s monetary policy and left the repo rate constant at 4%. The reverse repo rate has likewise stayed unchanged at 3.35 percent. The union government is not ready to reduce liquidity infusions at this time because prior employment generation and manufacturing data are not tremendously positive, although the inflation rate is worrying. 

As a result, ordinary folks will be able to obtain loans at almost the same interest rates and lower costs. This may boost automotive and property sales in the country ahead of the holiday season, as individuals will be more eager to take out loans at reduced interest rates.

Insiders’ Perspectives on the Real Estate Industry 

The real estate industry hailed the RBI’s decision to maintain policy rates constant on Friday, saying the regime on lower home loan interest rates will continue, assisting in the resurgence of housing demand, which has been severely impacted in the previous two months owing to a second wave of the COVID epidemic. The sector needed more actions to increase liquidity.

According to Niranjan Hiranandani, the President of NAREDCO, the RBI has kept benchmark rates steady, which will benefit housing loan borrowers by lowering home loan interest rates. While it is a reaction to the COVID-19 epidemic challenges, it is good for home loan borrowers because floating retail home loan rates have stayed low. 

CREDAI President Harsh Vardhan Patodia has a strong opinion on the RBI’s choice to maintain a tolerant approach since limiting the impact of the COVID outbreak is important. Mr. Sanjay Dutt, Managing Director and Chief Executive Officer of Tata Realty and Infrastructure, backed Mr. Patodia and thought the policy was good news. 

President Harsh Vardhan Patodia subsequently said that changing the ECLGS plan and giving banks and other financial institutions clear instructions on authorizing funding for labour-intensive industries like real estate is critical. Mr Sanjay Dutt responded by suggesting that industrial status for real estate, input credit, and enabling FDI in RTMI (ready to move in) are all things that should be considered.

According to Anshuman Magazine’s Chairman and Chief Executive Officer, India, Southeast Asia, the Middle East, and Africa, the RBI’s accommodating approach will assist maintain homebuyer sentiments that were developed prior to the second wave. 

Later, Anshuman Magazine’s Chairman and Chief Executive Officer and Anuj Puri, Chairman of Anarock, both anticipated that banks and NBFCs would continue to give low-interest loans to homebuyers, bolstering demand in the real estate industry and due to the reverse repo rate and repo rate remaining stable. 

According to Shishir Baijal, MD of Knight Frank India, there is an urgent need to give monetary policies and support to consumers and businesses alike due to the simple availability and low cost of credit. Amit Goyal, who is the CEO of India Sotheby’s International Realty, expressed a similar view on the policy and claimed that the policy would effectively ensure that house loan interest rates would remain at a record low.

Mr Goyal and Dhruv Agarwala-(Group CEO of Housing.com, Makaan.com, and Proptiger) added that the RBI’s goal of preserving liquidity and promoting economic development in the country through lower home loan interest rates would be necessary in recovering from the pandemic’s second wave, and that the RBI’s decision to maintain the repo rate was foreseeable, and that the banking regulator should announce monetary aid to the NHB in order to regain control.

Investors Clinic founder Honey Katiyal feels that lower home loan interest rates should be lower for longer. But on the contrary, in Mr. Katiyal’s opinion, Piyush Bothra, the CFO of Square Yards, challenged the present low home loan interest rate to remain constant.

Samantak Das, who is a Chief Economist and Head Research & REIS, JLL, has a strong opinion that competitive mortgage rates are expected to provide long-term support for sustainable real estate growth, and are believed that general economic recovery leading to employment and income growth will be contributing factors for housing demand and adding to the point of Mr Das, Chairman Pradeep Aggarwal of Signature Global, an NCR builder specialising in affordable houses, advised potential home buyers to take benefit of the low rates of home loans.

The Bottom Line

According to the majority of realtors, the new policy will assist banks in maintaining current home loan interest rates or perhaps lowering them somewhat in the coming months. Meanwhile, a couple of the country’s top lenders recently released plenty of home loan offers and on the other hand, some have lowered the interest rate on house loans.

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By Michael Caine

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