09 January 2017

Slash in home loan rates shall give an impetus to the buyer confidence


In the aftermath of recent demonetisation of INR 500 and 1000 currency notes, some banks have reduced their bank rates. Reduction in bank rates has pulled down the home loan rates by 70 to 90 basis points. Consequently, the home loan rates are at their lowest point in the past six years. We have put together the change in home loan rates of a few major banks as follows: 

                                              Home Loan rates of banks
 Name of the Bank
 Previous Rate
 Current Rate (Fixed) as on 9 Jan 2017
 Union Bank of India
 Kotak Mahindra Bank
 Axis Bank

Research view

The low-interest rate environment is likely to continue and we cannot rule out the possibility of further rate cuts in the coming months. We anticipate the announcement of a few more incentives in the upcoming Union Budget that may increase the disposable income in the hand of buyers. In our opinion, the reduction in home loan rate coupled with other incentives should give a boost to the homebuyers’ sentiments in 2017. 

Contact for more information

Colliers International | Mumbai, Indiabulls Finance Centre, 17th Floor, Unit No. 1701, Tower 3, Senapati Bapat Marg, Elphinstone (W), Mumbai 400 013, Maharashtra, India | Tel: +91 022 4924 9780