News & Views on Indian Real Estate

Tuesday, April 01, 2008

Reduction in housing loan rates

There is good news for all home loan consumers in India. Given the boom in real estate in India, housing/home loan has become the most popular form of loan. Various banks have started working in the direction to ease the burden on the home loan consumers. Two public sector banks, Allahabad Bank and Central Bank of India, have decided to reduce interest rates on housing loans by 25 basis points. The above reduction will be effective from April one, on all fresh sanctions. Various other banks have started thinking on this line to boost the demand in housing loan sector, particularly among small and medium category borrowers. Considering the current inflation in property rates this is only a small concession.