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Monday, December 15, 2008

Interest Rate for Home Loans should be around 5 - 7.5%!

Thumbs down!

Major real estate players today gave a thumbs down to the announcement by public sector banks to cap interest rates at different slabs of housing loan, saying it was not enough, though they felt the step could spur demand in smaller towns.

6% - 7.5%

"For over Rs five lakh loans, we were expecting 6 per cent and between Rs 5 lakh and Rs 20 lakh we were expecting 7.5%," said Parasvnath Developers Chairman Pradeep Jain.


"Rate of interests are still very high... There will not be many takers... The rate of interest should have been around 7-8%," said DLF Group Executive Director Rajeev Talwar.

5% - 9%

"We were expecting more sops from banks for the housing sector... for loans up to 50 lakh, interest rates should have been 9% and and for Rs five lakh, 5%," said Omaxe CMD Rohtas Goel.

What is your take on interest rate?

What should be the rate of interest for the home loans above Rs. 20 lakh? Please, share your views in the comments! (Comments Policy)
To read more, please, visit - PSU banks cut rates on home loans up to Rs 20 lakh

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  1. All builders are looking at others to reduce their prices, banks, steel cos, cement cos, transporters & other contractors. They have also trimmed their company expenses or head counts. What they are not reducing is their sale prices per sq.ft. Why should a bank earn less & builder continue his nexus. The cash bank & land bank that they have amassed in the past few years is HUGE compared to the present 'LITLLE' temporary slow down. Their past earnings will allow them to absord this shock for the next 4-5 years. If builders want to boost their sales they must reduce prices. Look at the auto companies & their success right now, Kudos to them & shame on the builder nexus.

  2. Just flattered with this home loan post, what a fab read. Well written and most detailed post so far.

    Home Loans