Pune: With more banks and NBFCs getting on the low mortgage rate train, real estate players expect another bumper holiday season, albeit with some concern about eligibility for lower rates.
HDFC was the latest to announce rates below 7% for home loans, valid for all new disbursement requests until the end of October, regardless of the loan amount or the applicant’s job category.
It follows (SBI), Kotak Mahindra, Bank of Baroda, Bank of Maharashtra and other public, private banks and a handful of large cooperative banks, which have enjoyed abundant liquidity in the market, supported by the maintenance from the RBI low interest rates. The active policy of banks also focusing on personal loans, after a wave of risky business lending, has also worked to the advantage of consumers, observers added.
However, the link between individual credit scores and the special holiday rate by some banks and NBFC, including HDFC, is causing some real estate players to express their dissatisfaction, especially with the pandemic hitting the repayment schedules of many.
“The reduction in mortgage loans to rates such as 6.6% or 6.7% is definitely a big plus for the market in the months to come. However, there are practical barriers to using these rates, especially some wanting a credit score of 800 or more from customers as there were many defaults due to the pandemic, ”Darshan said. Chawla, President of Professional Realtors of Pune.
“Credai’s recent report revealed that home sales in Pune have made good progress this year. We’ve had 3,000 visits over the past few weeks, and 10-12% of those leads have turned into sales, ”said Vineet Goyal, Managing Director of the Kohinoor Group.