Mumbai: The home loan rates are going north again. And this is going to pinch hard the monthly budgets of those who has a home loan debt in the bank.
It is after a lot of savings that a person gets to buy a house. There are scores of residential buyers who have been hit hard by this rise in the home loan interest rates.
While HDFC and IDBI have already declared an increase in their rates, sources say other banks too will follow, sooner than later.
The latest increase would mean that for a person who might have borrowed say Rs 20 Lakh for a 20-year period, the monthly payout would increase from an earlier Rs 15,506 to Rs 16,112.
On their part, the bankers blame it on the increasing cost of funds.
Says V P Shetty, chairman of IDBI Bank, "It was necessary to increase the rates to make it viable considering the market forces."
While banks are confident that this minor increase would not hit the demand for home loans, analysts feel the best option for a person who has already taken a loan would be to convert it from floating interest rates to fixed rates.
"The option is to convert the dloating rate loans to Fixed rate. There are many companies that are still giving these loans at competitive rates," explains Dilip Davda,a financial advisor.
The interest rate hike would not mean much to people who have taken a loan on a fixed interest basis.
But for people who have borrowed the money on a floating rate or for fresh buyers who would now plan to take a home loan, the latest interest rate hike would definitely mean a raise in their budgets.
Comments
0 comment