Home Loan Rates Will Be Reduced: Venkaiah Naidu
The Union Minister of Urban Development and Housing & Urban Poverty Alleviation (HUPA) Venkaiah Naidu has hinted at possible cut in the interest rates on housing loans. He said that reducing home loan rates will be one of his top priorities as a natural corollary to the BJP's promise to provide housing for all by 2020, for it formed part of the party's election manifesto.
"We will intervene and bring down the interest rates for housing a little. That will be my priority," said Mr. Naidu soon after assuming the charge of the ministry.
Significantly, Naidu pointed out that the previous NDA regime headed by Atal Bihari Vajpayee had given top priority to housing by reducing interest rate on home loan, bringing it down from 11 per cent to 7-7.5 per cent. Unfortunately, at present, home loan interest rate has gone up to 10 to 11 per cent, due to inflationary pressures. Naidu assured that that he would take up the issue of the need for reducing home loan interest rate with his colleague, the finance minister Arun Jaitley.
The new Urban Development minister is all for interest reduction to give a fillip to the real estate sector which has been undergoing a sluggish phase for a long time. It is very important as reduced interest rate on home loan as it will immensely help the government in achieving its goal of housing for all.
Going by Naidu's statement, it seems €Achhe Din€ are not far behind for the real estate consumers who rely on home loan to make their dream of owning a house a reality. He added that the corporates, financial institutions, banks etc must give easy loans to their employees to fulfil their housing needs.
Housing topped the list of priorities of the previous Atal Behari Vajpayee-led NDA Government.
€You need to have interest subvention. That will be my passion. Affordable housing for all is my favourite agenda, but it is easier said than done," Naidu added. But the new Urban Development minister must remember that reducing home loan itself will not work. The government should also work towards reducing the cost of home ownership by rationalising the multiple taxes levied on realty transactions. According to experts, the Narendra Modi-led government should improve access of capital-intensive industry to funds at affordable rates through implementation of Real Estate Investment Trust (REITs) and granting infrastructure status to the real estate sector.
Real estate developers demand that at least low-cost housing should be given the status of infrastructure. Their objective is to make it easier for them to get finance from banks for longer terms and thereby increase the supply of housing stock in the country. This will be an added bonanza for the real estate consumers who are all set to get relief in terms of reduction in interest rate on housing loan. As housing finance forms the biggest chunk of real estate transactions in the country, easing in its rate, terms and conditions for developers as well as consumers is a positive development that the sector was awaiting all along for the past few years.
"We will intervene and bring down the interest rates for housing a little. That will be my priority," said Mr. Naidu soon after assuming the charge of the ministry.
Significantly, Naidu pointed out that the previous NDA regime headed by Atal Bihari Vajpayee had given top priority to housing by reducing interest rate on home loan, bringing it down from 11 per cent to 7-7.5 per cent. Unfortunately, at present, home loan interest rate has gone up to 10 to 11 per cent, due to inflationary pressures. Naidu assured that that he would take up the issue of the need for reducing home loan interest rate with his colleague, the finance minister Arun Jaitley.
The new Urban Development minister is all for interest reduction to give a fillip to the real estate sector which has been undergoing a sluggish phase for a long time. It is very important as reduced interest rate on home loan as it will immensely help the government in achieving its goal of housing for all.
Going by Naidu's statement, it seems €Achhe Din€ are not far behind for the real estate consumers who rely on home loan to make their dream of owning a house a reality. He added that the corporates, financial institutions, banks etc must give easy loans to their employees to fulfil their housing needs.
Housing topped the list of priorities of the previous Atal Behari Vajpayee-led NDA Government.
€You need to have interest subvention. That will be my passion. Affordable housing for all is my favourite agenda, but it is easier said than done," Naidu added. But the new Urban Development minister must remember that reducing home loan itself will not work. The government should also work towards reducing the cost of home ownership by rationalising the multiple taxes levied on realty transactions. According to experts, the Narendra Modi-led government should improve access of capital-intensive industry to funds at affordable rates through implementation of Real Estate Investment Trust (REITs) and granting infrastructure status to the real estate sector.
Real estate developers demand that at least low-cost housing should be given the status of infrastructure. Their objective is to make it easier for them to get finance from banks for longer terms and thereby increase the supply of housing stock in the country. This will be an added bonanza for the real estate consumers who are all set to get relief in terms of reduction in interest rate on housing loan. As housing finance forms the biggest chunk of real estate transactions in the country, easing in its rate, terms and conditions for developers as well as consumers is a positive development that the sector was awaiting all along for the past few years.
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