In these challenging times of global economic crisis where businesses and markets have seen a drastic downward phase due to the rapid arrival of the COVID-19 virus on the horizon, it has significantly harmed the Indian real estate sector that was already affected by issues such as cash constraints, regulatory and procedural reforms. However, given the current situation, it is reassuring to see that experts believe the house loan industry in India would grow at a CAGR of roughly 22%.
The main forces driving the housing loan sector in India are the salaried/business class, cheap home loan interest rates, enticing developer schemes, monetary measures, government policies, regulatory backing and shortage of housing in India.
Salaried and Business Class- This section has realised the importance of residential rental payments equivalent to the EMIs that they will be required to pay for their properties. As a result of the circumstance, more people purchase residential spaces using home loans rather than renting.
Lower Home Loan Interest Rates- They are the key drivers of the home loan market. India continues to have one of the lowest home loan interest rates in the world. It currently has the lowest home loan interest rate among emerging countries. Indians are investing in real estate due to the decline in interest rates offered on savings and FDs.
Enticing Developer Schemes- Such schemes are another factor that encourages buyers to take home loans with the availability of enticing building incentives. It includes late EMI payments and programs depending on construction.
Monetary Measures- They are yet another factor pushing the market. The Reserve Bank’s economic policies are propelling the Indian home loan industry. The country has already seen higher-ever repo and reverses repo rate reductions to provide effective relief during COVID-19.
Multiple Government Policies- Policies like the Pradhan Mantri Awas Yojana (PMAY) is devoted to its objective of “Housing for All”, under which the Credit Linked Subsidy Scheme (CLSS) for the Middle-Income Group (MIG) has been extended until March 2021 as a result of this.
With this knowledge of the various factors pushing the home loan market in India, select the best institution offering the most economical financial instrument for loan purchase. Being aware of this information will help in making an informed decision, enabling the loan applicant to find the most suitable Home Loan option.
0 comments:
Post a Comment