Govt Seeks Home Loan Data
Reality Check: Govt Seeks Home Loan DataAhead of acting finance minister Pranab Mukherjee's meeting with public sector bank chiefs on Monday, the government has asked state-owned lenders to submit data on home loans sanctioned by them since December 15.
On December 15, the public sector banks had announced lower interest rates on home loans up to Rs 20 lakh following government intervention to boost demand.
Bankers acknowledge that despite a reduction in interest rates to 9.25 per cent for loans up to Rs 20 lakh and 8.5 per cent for home loans up to Rs 5 lakh, the response has been lukewarm. Interest rates under the package are fixed for five years and the loans come with a free property insurance cover.
"The flow of home loans has not picked even after the special package as there is a perception that real estate prices will fall further. Banks have explained this to the finance ministry, but it has asked for fortnightly data," said a senior executive at a public sector bank.
Source: Business-standard
On December 15, the public sector banks had announced lower interest rates on home loans up to Rs 20 lakh following government intervention to boost demand.
Bankers acknowledge that despite a reduction in interest rates to 9.25 per cent for loans up to Rs 20 lakh and 8.5 per cent for home loans up to Rs 5 lakh, the response has been lukewarm. Interest rates under the package are fixed for five years and the loans come with a free property insurance cover.
"The flow of home loans has not picked even after the special package as there is a perception that real estate prices will fall further. Banks have explained this to the finance ministry, but it has asked for fortnightly data," said a senior executive at a public sector bank.
Source: Business-standard