Indian Loans

Rbi keeps the pension rate on hold; Why mortgage borrowers should rejoice

By Virginia J. Ruiz

The Reserve Bank of India (RBI) on Wednesday kept the repo rate at 4% in its monetary policy announcement, encouraging millions of mortgage borrowers. The status quo on interest rates means that the low home loan interest rate regime will continue in the market and bodes well for the housing industry and the real estate industry as a whole, experts said.

As we know, the repo rate is the interest rate that the RBI charges commercial banks when they lend funds. So when the RBI keeps it unchanged, it expects banks to keep it stable for end consumers. This means that the loans offered to customers will not experience any change in interest rates, which will keep the Equal Monthly Payments (EMI) static.
According to Yash Gupta, equity research analyst at Angel One Ltd, mortgage rates are currently between 6.5% and 8% and it is one of the lowest mortgage rates in the world. ‘story.

“The same should stay a little longer. It works well for all mortgage borrowers as the affordability environment will continue, ”said Anuj Puri, President of ANAROCK Group.

Echoing Puri’s views, Dhaval Ajmera, director of Ajmera Realty and Infra India Ltd, said that with a low loan interest rate regime, the speed of home sales observed in major Indian cities would continue on an upward trajectory.

Suren Goel, partner of RPS Group, added that this might be the best time to buy a dream home, as the interest rate as well as the price of the house is one of the biggest factors in buying a dream home. affecting.

According to Ramani Sastri – Chairman and CEO, Sterling Developers Pvt. Ltd, the RBI’s decision to keep the repo rate unchanged will certainly bode well for all interest rate sensitive sectors heading into the new year, as the economy is on the road to recovery.

“For homebuyers, this move will help restore confidence and better access to affordable home loans and boost housing demand. It has also helped the sector regain its strength and stay afloat in these difficult times. previous, ”he said.
Sastri said homebuyers should take advantage of the current situation as there is a chance that prices will rise later due to reduced supply and pressure from increased raw material costs.

“There has been a fundamental shift in the expectations and attitude of buyers towards home ownership, which has already enabled the residential real estate industry to perform very well in all segments of the post era. -COVID. home buyers, who couldn’t make a decision sooner, are eager to close the deal now. Real estate is definitely an asset class in which to stay invested today and in the long term and in the future we believe the markets will experience sustained growth, ”he added.

Going forward, added Atul Monga, CEO and co-founder of BASIC Home Loan, the focus remains on how long these rates can be sustained while keeping inflation under control.

The opinions and investment advice expressed by the investment experts on CNBCTV18.com are theirs and not those of the website or its management. CNBCTV18.com advises users to consult with certified experts before making any investment decisions.

(Edited by : Ajay Vaishnav)

First publication: STI

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Virginia J. Ruiz
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