Union Bank is offering home loan at 6.7 percent, currently the government banks are offering home loan at 6.95 percent interest rate
In the midst of the Corona crisis, repo rates have come down to four per cent, with state banks drastically cutting interest rates on home loans. Currently, public sector banks are providing home loans at the rate of 6.7%, which is the lowest in the last several decades. Banking experts say that this cut will increase the pressure on private banks in the coming days. Private banks will also make loans cheaper to save market share.
State-owned bank Union Bank is offering home loans to its customers at the rate of 6.7 percent. At the same time, Bank of Baroda, Bank of India and Central Bank of India are charging interest on home loans at the rate of 6.85 per cent. With this, State Bank of India, the largest bank in the country, is giving home lane at 6.95 per cent and LIC Housing Finance at 6.90 per cent. Significantly, there is no shortage of funds with public sector banks.
Due to the Corona crisis, demand for loans from industry has come down. In such a situation, government banks are targeting individual lenders. Banks are providing loans at a cheaper rate to a person with a credit score of 700 or above. At the same time, those who have poor credit scores are providing expensive loans by 50 to 60 basis points. Experts say that private banks will also cut home loan rates in the coming days. Home buyers can reduce their EMI burden by taking advantage of this opportunity. At the same time, a person already taking a home loan can save good by transferring a home loan at a higher rate of interest than a higher interest rate.
Home loan transfer or opportunity to prepay
Right now the rate of interest is quite low. By taking advantage of such an opportunity, you can save good money by transferring home loan to a bank with cheap interest rate. If you have taken a home loan at an interest of 10% or more, then you should immediately transfer the home loan at 6.95% interest. Also, if you have funds, make a pre-payment. You can reduce the repayment period of the loan through pre-payment. Also, there is an option to reduce the amount of EMKI.
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Golden opportunity for home buyers
Rakesh Yadav, CMD, Space India Group, told Hindustan that Corona is the most golden opportunity for home buyers to fulfill their dream dreams amid the crisis. The reason for this is that the rate of home loan has reached the last 15 years low. At the same time, home buyers are also getting an interest subsidy of Rs 2.67 lakh under the Pradhan Mantri Awas Yojana (PMAY). With the economy unlocked, developers are also offering attractive schemes to increase sales. By taking advantage of all this, home buyers can fulfill their home dreams in a low budget by saving well. At present, the property price has also not increased for a long time.
The fear of hanging the project will end
Director of Gulshan Homage, Deepak Kapoor stated that there are a few select sectors in the country where there is a readiness to promote the FDI limit. The housing sector is one of them. The approval of 100% FDI on finished projects in the real estate sector will allow realty companies to monetize the finished project amid the crisis of liquidity that has arisen from the current Corona epidemic. This will help the sector facing financial crisis to overcome it. At the same time, the fear of hanging the project under construction will be over. This will also create an atmosphere of trust among customers which will help the real estate sector to get back on track.
Developers are giving new offers to increase sales
Developers have now come up with some new offers to woo their customers. Big builders like Piramal Realty and Hiranandani have removed the cancellation charge on properties booked during lockdown. Both the builders are guaranteeing 100% refund. At the same time, many developers in NCR are giving home buyers the option of swapping. Under this scheme, developers are offering flat to their old buyers in ready to move or under construction projects. However, such options are being offered to buyers who are willing to pay the remaining amount.
Weekly lockdown causes trouble
Anuj Chaudhary, director of real estate company Panchsheel Buildtech, told Hindustan that the lockdown has been re-imposed in many small and big cities of the country as the pace of the Corona transition intensified. Noida, one of the big realty markets, has also imposed lockdown on Saturday and Sunday. Most of the buyers move out of the house to buy a house in these two days but they are not able to do so now. This is directly impacting the sale of the house. Unlock-2 is also not seeing any major improvement in sales. In such a situation, we demand the government to take some concrete steps towards unlocking at the earliest.
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