Home loan sales reviving

Bankers believe their strained home loan portfolios will see relief in the coming quarters, with interest rate cuts coming into force.
“We expect our home loan offtake to increase by 22 per cent y-o-y next quarter with the fall in interest rates,” said B.R. Pai, General Manager, Syndicate Bank. The bank, which has sixty-five hundred crore rupees home loan portfolio, saw a slower 18% y-o-y growth in home loans disbursed last quarter, as compared to a 30% growth for the same quarter last year.
Home loans will become cheaper as most public sector banks, including State Bank of India, Canara Bank and Syndicate Bank among others, have cut their benchmark prime lending rates (BPLR) by 75 basis points. Bankers are betting on buyers who had earlier postponed their purchases owing to a high interest rates to come on board.
Kumar Gera, chairman of the Confederation of Real Estate Developers’ Associations of India (Credai), said there is a pent up demand for residential property that will lead to a demand uptake once liquidity returns.

This entry was written by , posted on November 11, 2008 at 1:44 am, filed under Real Estate News and tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post. Trackbacks are closed, but you can post a comment.

One Comment

  1. archana
    Posted November 12, 2008 at 1:39 am | Permalink

    Having a home of one’s own is always a dream for many. So many banks are offering you home loan options from a wide range.

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