The fluctuating home loan rates are on the raise... what would be the future?

Question

Those who bought homes with loans in fluctuating rate are in a constant fear. Would the Indian govt do something to prevent increase?

Answer 1

Bhuvana the present govt is doing nothing for the people to get homes. Do U know most of the money (over 70%) given as home loan goes to people who already has one or two homes and for NRI's from Europe and USA where there is no need for them to give loan.

Most of the indians poor fellows are not getting loans to fulfil their dreams/ What for this policy, to enrich further the richer. Because of failur to include clauses such as 1) If U or Ur family already owns a home another loan is not given at this rate. May be at a higher rate should be considered.
2) If u are an NRI and ur monthly earnings is upward of rs100,000/- the loan should not be given for them to buy property above rs25 lacs and that too at this interest rates.

The govt is not bothered u know what happened these guys come take loan and started increasing the Land Rates, speculation and everything skyrocketed.

Now give loan to the needy, i.e one who is buying an house for the first time at low interest rates for others u charge heaven.

If not thr rich becomes richer and the poor poorer.

Answer 2

At present not only the home loan interest rates but also the interest rates of all other credit facilities are on raise, except where the Statutory Bodies/Controlling institutions controlled the rate of interest either by offering subsidy or by virtue of their statutory powers as in the case of loans to farmers.Even though the housing sector is treated as priority sector, it is not treated at par with the loans to the farmers for productive purposes.
Only the competition between the financial institutions can lower the interest rates on housing sector. In the present context of liberalisation and the autonomy given to the bank to fix the rate of interest on loans by their own, the Government would not interfere with the fixing or interest rates on housing loans. Hence in view of increasing rate of interest on deposits it is unlikely that the Govt of India would do some thing to prevent the increase in the rate of interest on Housing. The increase of interest rates on housing would continue for some more time till the economic conditions favour the decrease.

Answer 3

Will answer later.

If you can and are in a position to convert the loan to fix rate, do it.

The past is any indication rate goes up fast and do fluctuate but drop is very slow and short lived.

Answer 4

Hello,
Housing loan interest rates will continue to rise further, because it will lose its prirotity status.
It is good as an investment for personal dwelling rather than a speculative investment.
Vaidyanathan

Answer 5

Why do you expect Government to do something, when you have opted for market economy.But still do not despair. The increase is temporary phenomeneon only on for the next two to three years.