 Online edition of India's National Newspaper Thursday, Dec 18, 2008 ePaper | Mobile/PDA Version |
|
|
|
|
|
|
| Tamil Nadu |
|
News:
ePaper |
Front Page |
National |
Tamil Nadu |
Andhra Pradesh |
Karnataka |
Kerala |
New Delhi |
Other States |
International |
Opinion |
Business |
Sport |
Miscellaneous |
Engagements |
Advts: Retail Plus | Classifieds | Jobs | Obituary |
Tamil Nadu
-
Chennai
Public sector bank officials optimistic of increase in disbursal of home loans New projects priced under Rs.25 lakh announced in last 3 weeks received great response CHENNAI: While builders and bankers in the city look at the home loan package announcement by public sector banks as a measure insufficient to revive the industry, customers certainly welcome every rupee that they get to save. To them, it is another small step that will make their dream of affordable housing a reality. Reacting to Monday’s announcement, real estate players on Tuesday said that they were expecting more government initiatives to help the realty industry. At the same time, they admitted that it would catalyse optimism among the customers who adopted a ‘wait-and-watch’ approach when interest rates soared sometime ago. Officials of leading public sector banks such as State Bank of India in the city were optimistic of an increase in disbursal of home loans following the new package. They, however, continued to stress the need for the inflated property values to stabilise at a realistic level for the disbursals to go up. “The package will not help realty in the city, as it is difficult to find residential properties priced below Rs.20 lakh,” said R.Kumar, Managing Director of Naveen’s. “The revised rates for loans up to Rs.5 lakh at 8.5 per cent and for loans between Rs.5 lakh and Rs.20 lakh at 9.25 per cent will not bring a big change. The industry expected interest rates to be reduced to 6-7 per cent. The banks should offer even loans above Rs.20 lakh at 9.25 per cent,” said Padam Dugar, Managing Director of Dugar Housing. Prospective buyers are not complaining. The last three weeks have seen new projects priced under Rs.25 lakh being announced and their response has been overwhelming. The new home loan package will help those on the lookout for such projects. For example, a Rs.5 lakh-loan that attracted Rs.4,910 as EMI will now be Rs.4,340. Similarly, the Rs.20 lakh-loan that demanded an EMI of Rs.19,640 before will now cost Rs.18,320. “This saving in EMI is bound to motivate many like me seek a home loan,” says R. Shanmuga Priya, a software professional. Customers planning to construct a house on the land already owned by them in the city will make use of the lower interest rate, said R. Manoharan, an official of a public sector bank. But the reduction in the interest rate will have to be coupled with a drop in other levies such as service tax to help more people buy a house, he added. “As new approvals in the affordable housing segment will consume more time, the time limit announced for the package, till June 30, 2009, will be insufficient. It has to be extended to support the industry in Chennai,” added Mr. Kumar.
Printer friendly
page
News:
ePaper |
Front Page |
National |
Tamil Nadu |
Andhra Pradesh |
Karnataka |
Kerala |
New Delhi |
Other States |
International |
Opinion |
Business |
Sport |
Miscellaneous |
Engagements |
|
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | Publications | eBooks | Images | Ergo | Home |
Copyright © 2008, The
Hindu. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu
|