Home Loan Interest Rate: What RBI Monetary Policy Announcements Mean For Buyers
Home Loan Interest Rate: What RBI Monetary Policy Announcements Mean For Buyers
Home Loan Interest Rate RBI Monetary Policy Update: Since, RBI has kept key policy rates unchanged, the low-interest regime on home loans will likely to continue providing an opportunity for buyers to invest for their dream houses or flats.
The increase in the key policy rate by the Reserve Bank Of India (RBI) has resulted in a hike in interest rates by the bank.
New Delhi: RBI Governor Shaktikanta Das today said that the significant reduction in interest rates on personal housing loans and loans to commercial real estate sector augurs well for the economy. While announcing the bi-monthly monetary policy review, the Reserve Bank of India governor cited that these segments are employment intensive, according to a PTI report.
RBI Monetary Policy Impact On Home Loan Interest Rate
“The efficacy of RBI’s monetary policy measures and actions is reflected in the significant improvement in transmission during the current easing cycle. The reduction in repo rate by 250 basis points since February 2019, has resulted in a cumulative decline by 217 basis points in the weighted average lending rate (WALR) on fresh rupee loans,” the RBI Governor said.
“The low interest rate regime has also helped the household sector reduce the burden of loan servicing,” Governor Das said.
The significant reduction in interest rates on personal housing loans and loans to commercial real estate sector augurs well for the economy, as these sectors have extensive backward and forward linkages and are employment intensive,” Governor Das said.
Since, RBI has kept key policy rates unchanged, the low-interest regime on home loans will likely to continue providing an opportunity for buyers to invest for their dream houses or flats.
While, the low interest rate brings cheer to home buyers, experts on real estate sector said further cut would have intensified the demand even more.
“While the consumer is enjoying low home loan rates currently, a cut would have further intensified demand. A continuation of low interest rates regime works well for borrowers. There is a need for stimulant policy measures that would enhance and ease credit provisions and increases buyer’s confidence. Any announcements in these forms would have been appreciated,” Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group, said.
“The regular home buyer would of course take advantage of low interest rates prevailing now, but the overall demand in the real estate sector at a holistic level would have gone up further, thus giving a fillip to the economy,” Ramani Sastri, Chairman & MD, Sterling Developers Pvt. Ltd stated.
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