With the economy poised for strong growth and confidence returning to the capital market, most players expect the demand for home loans to rise. says P.V.Sivakumar.
The year 2009 was a good one for housing loan borrowers. Banks rolled out the goodies for home loan borrowers in the form of low interest rate offers and special home loan packages. Stable property prices also helped. So, the demand for home loans was steady. With the economy poised for strong growth and confidence returning to the capital market, most players expect the demand for home loans to grow in 2010. Bankers expect disbursements to be around 25 per cent higher next year. The first half of 2009 saw a deceleration in the housing loan segment due to a combination of reasons including the overall economic slowdown, high property prices and high interest rates.
According to the Reserve Bank of India's Macroeconomic and Monetary Developments Second Quarter Review 2009-10, as on August 28, 2009, the year-on-year growth in home loans was 5.4 percent.
Housing Loans by banks to soar in 2010 | Home loan demand to build up in 2010
Posted by Admin Labels: bank house loans, home loans, low interest rates, property investment, rbiBanks rejig home loan rates to improve off-take
Posted by Admin Labels: bank house loans, home loansSpecial rate of around 8% that was kick started by the State Bank of India is now being offered by all banks and institutions which are vying to grow in their home loan business. and HDFC, have also joined the bandwagon by offering special home loan rates in the recent past.State-owned lender Bank of India (BoI) has also decided to cut its interest rates on home loans since January 1, 2010.Through this reduction in interest rate, the bank expects to achieve a sanction of Rs 1,000 crore in home loan portfolio. Talking to FE, M Narendra, executive director of the bank, said, "We are likely to achieve 20% growth in our home loan portfolio during the current fiscal as against the last fiscal".), however, is not in a mood to go for any further rate cuts. Rather, it is planning to extend the deadline of the special home loan scheme from January 31, 2010, to the end of the fiscal.SL Bansal, general manager (retail), Union Bank, said almost 90% of the home loans were meant for semi-constructed houses in which the disbursement happens over a period of 24-36 months.
