While PM Modi’s demonetisation policy has received bouquets and brickbats, the real estate sector has emerged a major winner, as evident from the home loan rate cut. Suraj Uchil gets some ‘interest’ing reactions
2016 was a very eventful year for the real estate market. A lot of important policies announced by the government have led to people’s trust in the sector increasing once again. In fact, the real estate market was one of the major winners of reforms, which has helped bring in a better sense of transparency and credibility to the market.
Demonetisation was perhaps the most talked about policy of 2016. The policy of invalidating Rs 500 and Rs 1000 notes from the Indian currency system saw a lot of money being deposited in the banks. Many pundits suggested that this would, in turn, bring about a drop in the interest rates of loans in the near future. And, as if someone heard these experts, the New Year has started with an amazing gift to the common man. It began with SBI cutting down its home loan interest rates. Many other banks like Union Bank of India, ICICI have also followed suit, and the rest are likely to come up revised rates soon.
Rise in registrations
This step is being seen as a huge boost to the real estate market. A drop in interest rates would mean a lot many people going in for loans. And, with surplus amounts of money already with the banks, thanks to demonetisation, the chances of people getting their loan are also greater.
Manohar Shroff, Vice President, MCHI (Navi Mumbai Unit) explains, “The move by banks to cut interest rates is a very positive move. Both Mumbai and Navi Mumbai areas are seeing a lot of registration in properties post this announcement. The biggest beneficiary of the move will be the affordable housing section. Securing a loan at good interest rates will now be possible for a lot of home buyers.”
Go for it!
The mood in the public is also a positive one. Many home buyers who were a bit hesitant to apply for the loans owing to high interest rates can now heave a sigh of relief. Sachit Subramanian, a businessman from Mumbai feels that even a 0.5% dip in rates is a big deal in a long run. “If I am planning to take loan for 20 years for my house, with new rates I would effectively be saving up to 5% on my interest money every year. That’s a lot of money which I could be saving or investing someplace else. Plus, since I would opt for floating interest rates, if the banks further reduce the rates, which it most probability will, my savings would increase. So this would be the right time for people to invest in buying their house,” he opines.
Neha Kurani, a resident of Navi Mumbai and a Chartered Accountant by profession, feels that if the lending rates are lower, then the general people would resort to banks for their financial needs more as compared to previous years. “Though it is too soon to comment on the impact of the move, the early predictions are looking quite positive. If the rates are going to come down further, there would be no better time than now to invest in buying your dream home.”
If you have been waiting to buy your dream house, now would be the apt time to go for the home loan and buy the abode you always wanted.
“The move by banks to cut interest rates is a very positive move. Both Mumbai and Navi Mumbai areas are seeing a lot of registration in properties post this announcement. The biggest beneficiary of the move will be the affordable housing section. Securing a loan at good interest rates will now be possible for a lot of home buyers.”
— Manohar Shroff, Vice President, MCHI (Navi Mumbai Unit)