Home loan interest rates were expected to reduce

By Accommodation Times News Services

homes for widowsIt was expected the Union Budget will bring Infra and Housing Finance’ in priority sector, which would have benefited interest rates on loans to be reduced to 7 to 8 per cent. Union Minister for Urban Development, Housing & Poverty Alleviation M Venkaiah Naidu, earlier has said that, the NDA government has decided to bring the ‘Infra and Housing’ in the category of priority sector.

As per the Naidu’s statement, While announcing the NDA’s plans to categories infra and housing finance sector in priority sector Naidu elaborated their plans and said, “That the Ministry Urban Development, Housing & Poverty Alleviation has made a pre budget representation to this effect to the finance ministry to push for softer interest rate regime for housing and infra projects.”

Hence, people were expecting that Finance Minister will avail ‘Infra and Housing’ priority sector status. But, Minister failed to make any announcement related to this.

If government is willing to conquer its mission “Housing for all by 2022”, home loan interest rates need to be reduced, as inflation is on peak in real estate sector, lower rate of interest will be a huge relief to the home buyers. Currently, housing finance companies are charging 10-14 per cent rate of interest on home loans depending upon the schemes and nature of rate of interest (Whether it Fixed Rate of Interest/ Floating Rate of Interest).

Introducing ‘Infra and Housing’ in priority sector, will not only benefit home buyers with affordable homes, it will also give a boost in the real estate market and housing finance market, as it will increase the demand and purchasing power of an individual.

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