Housing Loan

Re-examine your theory on housing loan: Chidambaram to Finance Secy

Senior Congress leader and former finance minister P Chidambaram on Sunday urged Finance Secretary T V Somanathan to "re-examine his theory" that a housing loan is not a saving. Somanathan, in an interview to The Hindu while talking about the old tax regime, said that if one looks at the structure of the tax deductions, half of them are for savings and half of them are for dis-savings like housing loan or interest on housing loan. "The Finance Secretary asks 'Is the housing loan a saving?' His answer is 'No'. I wonder how many people will agree with the Finance Secretary," Chidambaram said on Twitter. The payment of interest and the installments of the loan is indeed an expenditure, but it is expenditure which is converted into an asset, which is a saving, the former finance minister argued. "Suppose you spend the same money on a holiday or at a race course: there will be no asset at the end," he said. "The Finance Secretary should re-examine his theory that a Housing Loan is not

High interest rates do not deter home buyers, says BoB research report

High interest rates does not impact the demand for housing as individual home buyers are aware that it may move up and down during the tenure of their loan, said a research report by Bank of Baroda. The borrowing rates are on the rise since May this year after the Reserve Bank of India (RBI) effected first hike in the benchmark lending rate. The repo rate has increased by 140 basis points since May. The report on 'Housing loan scenario in India' said the housing segment has shown resilience post pandemic. The strong momentum in housing loans by both Public Sector Banks (PSBs) and other financial institutions also points to the same. The government and RBI measure to support this sector, along with lower prices and interest rates helped cushion the impact of the Covid-19 pandemic on this sector. With normalisation of economic activity and a pickup in growth, demand for housing is poised to grow, suggesting more demand for housing loans, said the report authored by Aditi Gupta, ...

HDFC raises Rs 8.7k cr as 'social loan' to fund affordable housing segment

Mortgage lender HDFC Ltd on Friday said it has raised USD 1.1 billion (around Rs 8,700 crore) from a clutch of investors under 'Syndicated Social Loan Facility' to cater to affordable housing

Explained: What is a credit score, why is it important & how to improve it

A credit score is among the first things a financial institution would check in order to sanction a loan

HDFC raises Retail Prime Lending Rate on housing loans by 50 bps

Following the RBI MPC's decision to raise benchmark policy rate by 50 bps, many lenders, including ICICI Bank and BoB, have also raised their external benchmark linked loan rates by an equal amount

Cities with higher circle rates to gain from Sitharaman's new relaxation

While developers hail FM's announcement, they want the govt to exempt the entire interest paid on housing loan from income tax

Covid-19: Housing sales fell 46% in July-Sep; 57% in Jan-Sep on low demand

During the January-September period this year sales have declined by 57 per cent to 87,460 units, from 2,02,200 units a year ago

Huge relief for home loan borrowers if govt bears part of compound interest

The increase in EMI or tenure will be lesser if the government pays the compound interest

Retail credit up by Rs 40,853 cr in July over June, MSME loans up slightly

RBI said on YoY basis, non-food bank credit grew 6.7 per cent in July 2020, the same as June 2020, but lower than the growth of 11.4 per cent in July 2019

Housing finance has key role in making India $5 trn economy: Keki Mistry

For the housing sector, the authorities are aware of the strong linkages it has with the economy.

Festive season pushes retail lending in Sept to 16.6% from 15% a year ago

Consumer durable and housing loan accelerated the most, service sector witnesses a sharp fall in the credit growth rate

Limited loan growth gains for smaller home finance companies

HFCs give smaller-sized loans largely to the self-employed borrowers where banks have a lower presence

Small housing loan biz sees many players

Micro housing finance companies provide loans to people who have little documents to get a bank loan