Impact of RBIs repo rate policy in Realty developers

Q: Real estate developers are expecting that repo rate cut by 25 bps will help ease home loan.

V. Victor,

6th April 2016

Home Loan in Delhi

real estate

home loan

real estate sales

real estate developers

repo rate cut

reserve bank of india

rbi repo rate cut

rbi new policy

Follow Discussion

Also see discussions for

Delhi Home Loan Home Loan in Delhi

Replies (4)

RBI repo rate policy will be very helpful in terms of availing bank loan with lower interest rates and EMI part will also make a difference if you choose long term repayment plan

Abhishek,

1st May 2020

Comment

This is the right time for home buyers to buy a property, especially end users. As RBI repo rate policy will be very helpful in terms of availing bank loan with lower interest rates and EMI part will also make a difference if you choose long term repayment plan.

Abhishek,

18th April 2020

Comment

I think this is the right move by the Finance Minister as well as NDA Govt. Since January 2015, RBI had cut 150 basis points, including Tuesday's rate cut. In the September 2015, the key rates were cut by 50 basis points, but this has not benefited retail borrowers in equal measure. But this time, banks would pass on the benefits to borrowers.

V. Victor,

6th April 2016

Comment

It's true. this 25 bps RR Rate cut may improve homebuyers' affordability, and the market may spring back that's currently facing a tough time. Home Loan's are currently around 9.5%, move below 9%.

Supratim,

6th April 2016

But still home loan rates have to see a sufficient reduction to expect a clear revival in residential sales. Now, developers have been reducing sizes of apartments to make them affordable for more homebuyers, but a revival in the market can be expected only after home loan rates go below 9%

Praveen P, Delhi

6th April 2016

Experts are saying that a direct 25 basis point reduction in home loan rate would offer Rs 800/month savings if loan amount is Rs 50-lakh with 9.5% interest for 20 years' term.

Abhishke Karule, Mumbai

6th April 2016

I think Realty Developers have welcomed the RBI's decision to reduce repo rate by 25 bps. The decision, developers hope, would translate into lower EMIs on housing loans, which eventually might aid the slow property market.

Supratim,

6th April 2016

Comment

Yes, and i think this move has the potential to reduce the overall burden for homebuyers and can lastly speed up real estate sales by increasing positive sentiment for homer seekers. And they are very confident that banks will pass on the benefit of this cut to home loan borrowers.

Praveen P, Delhi

6th April 2016