Click to play videoNew Delhi: There is cheer in the market as news about public sector banks being ready to cut interest rates on home loans reaches consumers.
The benefit will trickle down only for those who have loans less than Rupees 20 lakhs, though. The announcement is likely in a day or two.
Public sector home loan customers can look forward to some cheer. Network 18 learns that the interest rate on loans below 20 lakh rupees is likely to fall to 8.5 per cent. For loans under five lakh rupees, it could fall to 7 per cent. This follows a meeting of 13 public sector banks with the Finance Secretary.
"In the next 1 or 2 days some package will be formalised for the housing sector upto five lakh and between five to 20 lakhs," said Chairman, IBA, T S Narayansami.
Bankers such as OP Bhatt, the Chairman of SBI also discussed a reduction in processing fee and a possible cut in the down payment to be paid by consumers.
Despite the stimulus that has been given together by the Reserve Bank of India and the government, there has also been some response by the government and industry. There is concern that the economy may require further intervention by the RBI.
With experts projecting a fall of 20-30 per cent in property prices in the coming year and bankers working on a significant cut in interest rates, the consumer's dream to buy a dream home in the new year could soon be a reality.
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