Loan rate may drop in Kolkata
Home loan customers could see EMIs reduce by a fourth and prospective buyers may be able to buy a larger home, feel real estate developers in the city following SBI chairman Arundhati Bhattacharya’s iteration that interest rate on loans will decline as banks are now flush with money following the demonetization. Nandu Belani, president of the Bengal chapter of Confederation of Real Estate Developers’ Association of India (Credai-Bengal), sees home loans becoming more affordable over the next 12 months with a series of interest rate cuts. “We will know about the exact situation post demonetization when the Centre comes out with firm numbers. Interest rate cuts should happen early next year, followed by another round after the Budget. From 9.25-9.75% at present, home loans should be available at 7-7.5% around this time next year,” said Belani. “If someone had budgeted an EMI of up to Rs 32,000 for a loan of Rs 30 lakh, the person can now take a loan of Rs 36 lakh. The enhancement of a person’s loan capacity by 11-12% can translate to the person being able to afford a bigger home or more conveniently located property,” pointed out Belani.
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