Reduce interest rate on home loan: CommonFloor Poll

Nearly 33 per cent of home buyers want ‘reduction in home loan interest rate’ to be the top priority for Modi Government amongst its stated goals, reveals a recent poll conducted by CommonFloor.com.

Apna ghar is a dream nurtured by almost every individual. However, due to soaring property values, denizens are forced to take the home loan route. And if we see the current interest rate of some of the major banks, unfortunately it has crossed the 10 per cent mark. (Consider the table below).

However, as per a recent poll conducted by CommonFloor, nearly 33 per cent of the respondents want the interest on home loans to be reduced. This was voted as the top priority over other points that were echoed in BJPs election manifesto such as fast-tracking infrastructure projects, 100 smart cities, housing for all and a few others.

Owing to economic malaise, slowing demand and rising interest rates, infrastructure projects worth Rs 14 trillion are stalled due to lack of requisite clearances. This has adversely affected the investors who have put in their hard-earned money in areas where major infra-projects were announced. Due to unending delays, investors are losing their money as they cannot sell the property in reduced price while they had invested a lion’s share. Further, they are not optimistic about the future prospects of that area as construction of those infra-projects are far from being a reality. Thus, about 22 per cent respondent felt that fast-tracking infrastructure projects should also be one of the top priorities for Modi’s government.

An interesting trend that came into light from the poll is that the aam aadmi is currently vying short-term plans rather than long-term. Nonetheless, the two major dream projects of the new government, namely 100 smart cities and ‘Housing for All’ by 2022 were voted as a priority by 16 and 15 per cent respondents respectively.

Last but certainly not the least, the ambitious Diamond Quadrilateral Project, which aims to connect the major cities via bullet trains got just 14 per cent votes. Albeit a long-term project again, but ignorance about the project could also be a plausible reason.

With Abki Baar Modi Sarkaar, real estate sector is looking forward to the ‘good days ahead of them’. Out of the progressive manifesto what actually will turn into a reality, only time will tell. Having said this, we just hope that gradually after the economy recovers, interest rate on home loans should definitely be worked upon.

        Table I:Current Interest Rates of Few Leading Banks, compiled by CommonFloor