 |
| Home Loan Cut off for Residential Property |
Budget 2019 bring good news for home buyers struggling to own their dream home. According
to Myshopdeal analysis, major segment of home buyers are interested in Bank subvention plan for
buying property. It acts as an instant solution to take possession for them. However, the high
EMI’s reimbursed to banks is a big time concern for buyers afterwards.
Taking this aspect into account, Government has taken some initiatives in favor of home buyers. In
2019 budget, Finance Minister Nirmala Sitharaman informed that banks agreed to launch loan
products linked to the Central bank of the nation i.e, RBI’s repo rate. It would pass on rate cuts
benefits to the borrowers. This collaboration will result in reducing EMI for home loans. It means
when any reduction happens in rates, it will directly benefit the end customers.
Myshopdeal shedding lights on the concept of repo rates to help you better understand how it works.
Repo rate is the rate at which the central bank of a country lends money to the commercial banks in
matter of any shortfall of funds. Myshopdeal is one of the top digital real estate consultants in Delhi
NCR. We have a team of best property experts who hold expertise in every segment of real estate
sector counting from residential, commercial or retail.
Myshopdeal find this move to be highly beneficial towards buyers. Linking of repo rates directly to
home loans will benefit the home buyers to avail the faster and cheaper housing loans. A reduction
in the repo rate means banks will be in a better position to offer loans to borrowers at lower interest.
This reforming of the spending model by the government have a clear intention to stoke demand and
ease bank credit which is creating a buzz across the nation.
Myshopdeal is excited about the news which states that the government will infuse Rs. 20, 000 crores
into housing finance companies as a solution to ease the liquidity crisis in the real estate sector.
Finance minister Sitharaman also informed that the government was holding discussions with
various stakeholders in order to find comparatively better solutions for buyers who have been waiting
for delivery of their housing projects from a long time.
On 7th August 2019, The Reserve Bank of India (RBI) reduced the repo rate by 35 basis points (bps) to
cut it off to 5.4 percent. A step caused by low growth and weak inflation and solution that would lower
the cost of borrowing for housing loan seekers. This is the fourth consecutive reduction in rates
that the banking regulator have exercised, after Shaktikanta Das took charge in December 2018.
How Loan Borrowers and Real Estate Sector is Benefiting From it?
A good number of banks have already implemented a cutback in their marginal costs of funds-based
lending rates (MCLR), after RBI perform the rate cut spree. This move will help in reducing the sum
total of EMIs (equated monthly installments) that housing loan borrowers, existing and new, pay for
every month. As per Myshopdeal analysis, private lenders HDFC Bank and ICICI Bank have cut off
their lending rates to 8.6 percent while that of public lender State Bank of India and Punjab National
Bank have lower their interest rate to 8.4 percent.
Bringing down these lending and interest rates would surely going to encourage homebuyers to take
a step, at a time when the real estate market is fighting with a plethora of issues. Among low sales
volumes and high inventories, India real estate market is coping up to get over an ongoing slowdown that
has choked the sectoral growth for long time. Besides the other measures that the government has
taken to fuel growth in the property sector, this rate cut might set off fresh and high demand in
major property markets.
Myshopdeal is excited with the rate cut initiative and other reforms announced recently. This move is
going to inspire buyers and developers. The reduction in repo rates during the previous reviews did
not have any noteworthy effect on lending rates. Going forward, it is all-important for the banks to
reduce lending rates and make sure that the home loan borrowers must be benefited with this move.
Realty market is a highly cost-conscious sector, the demand will only rise if the cut is substantial enough
to result in significant cost savings.
According to a data analysis measure undertaken by Myshopdeal, reflects that home sales in the major
nine property market dropped by 11 percent in the quarter ending June of FY20. Builders and
developers were also on the back of an inventory stock consisting of more than 4 lakh unsold units in
these markets at the moment when builders in the nation are under enormous pressure owing to a
liquidity crunch.
Lowering rate cut is an effectual step taken by the government in favor of home buyers. This is the right
time to invest in a residential property in Gurgaon. Buyers are having the best of all possible benefits
with reduction in rate cut as well as launching of some of the ultra luxury properties like M3M Golf
Estate, M3M Heights, M3M Skycity, M3M Natura, M3M St. Andrews and Polo Suites, M3M Sierra,
Trump Tower, Conscient Hines, Emaar Digi Homes, Mahindra Luminaire, Krisumi Waterfall residencies
and much more. Myshopdeal is the official channel partner of ‘A’ category builders in Gurgaon.
Connect with us for free site visit or bookings at 9711750505 or reach us at www.myshopdeal.co.in Author- Ankita Kataria
Comments
Post a Comment