Pages

Friday, December 19, 2008

Reduction in home loan rate will not boost realty sector

Assotech CMD Sanjiv Srivastava said government is of the firm opinion that most of the loan seekers will be covered under the scheme. Finance secretary Arun Ramanathan has said that around 75% of the loan is of less than Rs 7.5 lakh. However, consultants say that most of these loans were taken before 2003, when the market was subdued.
The proposed scheme of government to make available lower home loan rate to end-users will remain a non starter. It will not help in reviving the sector, which is facing the worst downturn in the last 10 years, because of high interest rates. The small-ticket size of the loan that qualifies for the proposed low interest rate is the reason that will sink the proposed scheme.

Under the proposed scheme, government has asked banks to prepare a package to make home loan up to Rs 20 lakh available in the range of 7-8%. According to banking sources, the banks are planning to offer home loan up to Rs 5 lakh at around 7% and that of between Rs 5 lakh and Rs 20 lakh at around 8%. The present interest rate on home loan offered by public sector banks is around 10%.

But, the scheme is unlikely to benefit homebuyers in most cities in the country. This is mainly because there are hardly any apartments or houses available for up to Rs 25 lakh. Most of the properties available in the cities of National Capital Region, Mumbai, Chennai, Pune, Bangalore, Kolkata and Hyderabad are in the range of Rs 40 lakh to Rs 50 lakh.
To read more, please, visit - The Economic Times

Subscribe for free to receive hot Pune real estate news, views and reviews:

1) Ravi Karandeekar's Pune Real Estate Market News Blog

2) Ravi Karandeekar's Pune Real Estate Investment Blog

3) Ravi Karandeekar's Pune Real Estate Advertising and Marketing Blog

4) Ravi Karandeekar's Pune Real Estate Blog

5) Please, feel free to call me on my mobile +91 98600 44110! I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so i do not charge anything for the first 8 minutes!)

6) Please, join me on Friendfeed, to share news articles, family photos, interesting links and videos and let us discover and discuss information!

Visit Ravi Karandeekar's Pune Real Estate Blog Group and join for free to receive updates of all blogs!

2 comments:

  1. Hi Ravi, your blog is a great consolidation of real estate news and views. What will be of great help to people is a consolidation of real estate prices across Pune in different areas. I am curious on Bavdhan. I had booked Gloria (Paranjpe) last Dec for 3200/sq feet. What would be the rates now in that area (Although I am not too worried if it has gone done :o) )?
    Thanks.

    ReplyDelete
  2. i have a 3bhk brand new flat in bavdhan. wud like to know the real estate prices there too..is rs.3300 a fair price ? my flat is situated behind maratha mandir.builder will give possession in march '09.
    thank you.

    ReplyDelete