Home Loan Rates: Low Home Loan Interest Rate System Continues, Benefiting Home Buyers: Broker on RBI Policy India Business News

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NEW DELHI: The real estate industry welcomed the RBI’s decision to keep policy rates unchanged, saying on Friday that the low interest rate regime on home loans would continue, helping the rebound in housing demand, which has been hit hard in the past two months due to a second Wave of the Covid pandemic.
The industry called for further steps to increase liquidity.
“RBI continues to maintain a accommodating stance as it is crucial to mitigate the effects of the Covid pandemic,” said CREDAI President Harsh Vardhan Patodia.
“The change in the ECLGS program and clear instructions to banks and other financial institutions to sanction funds for labor-intensive sectors such as real estate are the order of the day,” he added.
Naredco President Niranjan Hiranandani, National President, Naredco said the RBI had left policy rates unchanged, which will benefit home loan borrowers.
“While it reflects a response to the challenges of the Covid-19 pandemic, it is a benefit for home loan borrowers as variable personal loan rates have remained at their lowest levels for the past two decades,” he said.
Sanjay Dutt, Managing Director and Chief Executive Officer of Tata Realty and Infrastructure, said the policy was good news.
To revitalize the real estate market, he called for industrial status for real estate, input credits, enabled FDI in RTMI (ready to move in), a mechanism to release through a single window at the state level and lower GST for raw materials for sustainable long-term growth of the industry.
Anshuman Magazine, chairman and chief executive officer, India, Southeast Asia, Middle East and Africa, CBRE, said RBI’s accommodating stance will help maintain homebuyer sentiment, which was bolstered ahead of the second wave.
“With the repo rate and reverse repo rate held at the status quo, banks and NBFCs will continue to lend to home buyers at reduced rates, supporting demand in the real estate sector,” he added.
Anarock chairman Anuj Puri described the policy as positive for homebuyers.
“The continuation of this low-interest regime works very well for all borrowers as the high-affordability environment is likely to continue for some time,” Puri said.
Amit Goyal, CEO of India Sotheby’s International Realty, said the policy effectively means that home loan interest rates will continue to remain at historic lows.
“We believe that RBI’s goal of maintaining liquidity and supporting economic growth in the country through lower interest rates will be critical to recovery from the second wave of the pandemic,” added Goyal.
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & Proptiger, said RBI’s move to hold the repo rate is in line with expected lines. He said banking regulators should announce monetary support to the NHB to revive growth in the real estate sector.
Shishir Baijal, managing director of Knight Frank India, felt it was imperative to provide monetary policy assistance to both households and businesses – both because of the easy availability and lower cost of the funds.
Samantak Das, Chief Economist and Head Research & REIS, JLL, said, “While competitive mortgage rates are expected to support sustainable real estate growth over the long term, the macroeconomic recovery that is creating jobs and income growth will contribute.” for housing demand. ”
Among NCR’s signature global home builders, Chairman Pradeep Aggarwal urged potential homebuyers to take advantage of the low mortgage rates.
Amit Raj Jain, Sales Director at BPTP Ltd, said, “The historically low home loan interest rates are a boon for homebuyers and homebuyers should benefit.”
Raheja developers ED Nayan Raheja and MD Uddhav Poddar of the Bhumika Group were looking for industry-specific steps to increase demand.
Square Yards’ CFO, Piyush Bothra, said the home loan interest rate will remain stable at current levels.
Investors Clinic founder Honeyy Katiyal said home loan interest rates should be lower for an extended period of time.
Kaushal Agarwal, chairman of The Guardians Real Estate Advisory, said lending rates should continue to be cut until demand hits pre-Covid levels.



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