Repo rate cut for home loans by RBI

Q: Hi, it is said that RBI has reduced repo rates. How much rate is decreased and what is its effect on real estate?

Vidya, Bangalore

30th January 2013

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I agree with you Nikhil. But though RBI’s move is small, it is necessary towards the development of real estate in India. Such growth-oriented plans combined with the government’s fiscal measures are necessary for the industry development. Even in April 2012, the repo rate had been cut by 50 basis points. Experts are saying that more rate cuts would be done by RBI in future and it would allow cash crunched developers and other sectors to borrow at competitive rates.

Puneet Laskar,

12th February 2013

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Hey guys, 0.25 % is not a big deal I think.. WIll it really make so much difference in all these things? It is of little help and not a big measure by RBI. Giving industry status to real estate sector would be of great help to the sector but government is not ready for this.

Nikhil Agarwal, Delhi

12th February 2013

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RBI has reduced rates by 0.25%. So now the rates are 7.75 percent. And it has also cut Cash Reserve Ratio (CRR) to 4 %, releasing Rs 18,000 crore primary liquidity into the system. Now it is assumed that the funds will flow easily to real estate sector of India and developers will get loans at lesser rates.

Suresh,

4th February 2013

Comment

Realty experts see it as a positive step in increasing housing demand and encourage FDIs in the sector. The 25 basis points repo rate cut was much awaited in the realty market. Now since the RBI has announced it, the decision is believed to speed up the falling real estate market. Though it is not a big reduction in rates, it is hoped that in future many more rate cuts would happen.

Jeet Bhaskar, Delhi

31st January 2013

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Hi Vidya.. yes, RBI has reduced rates by 0.25%. So now the rates are 7.75 percent. And it has also cut Cash Reserve Ratio (CRR) to 4 %, releasing Rs 18,000 crore primary liquidity into the system. Now it is assumed that the funds will flow easily to real estate sector of India and developers will get loans at lesser rates. Buyers too will get home loans at lesser rate of interest.

Saran,

31st January 2013

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