New Delhi2 days ago
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The increase in interest rates has not had any effect on the demand for home loans. Home loan demand was 42% higher in the January-March quarter as compared to the October-December quarter. Compared to a year ago i.e. January-March, 2022, the demand for home loans has increased by about 120% in the last quarter.
According to a survey by property site NoBroker, especially working youth are preferring to buy homes by taking loans. The firm polled over 2,000 respondents from top property markets like Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad among others. Accordingly, the youth are now considering real estate as a safe and attractive investment.
Home loans still not too expensive: Survey
78% of the people surveyed said that home loan rates are neither too expensive nor too cheap. However, from May 2022 till now, the Reserve Bank has increased the repo rate by 2.50%. Due to this, the average home loan rate has come down to around 9%, which was 6.5% a year ago. The country’s largest bank SBI is currently giving loan at 8.50% annual interest.
Personal Loan for Down Payment
There is an increasing number of people up to 36 years of age who are taking personal loans for down payment. They are taking home loans up to 90% of the cost of the house. NBFCs are making such offers.
63% people want to own a home, compared to 49% before Covid. 27% home buyers in the age group of 25-35 years took a loan in the March quarter. Before Covid it was 17%.
rate cut expected
Amit Kumar Agarwal, CEO, NoBroker, said, “The home loan tenure is generally 20 years. During this, there may also be a phase of reducing the rates. Anyway, the repo rate is 6.5% now, while it has been 6-8% on an average in the last 10-12 years.
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