On August 23, Nirmala Sitharaman Finance Minister of India said that Bank has provided assurance to provide rate cuts on MCLR to borrowers. The people who have home loans will get benefits from this decision. It will help in lowering the interest rate of home loans. While India is still the world’s fastest-growing economy but in the past few years, the growth is not significant. That is why the decision at this time was very important to improve the real estate sectors.
The government has taken various steps in order to improve the capital in the real estate sector. In this decision, the government also promised to provide credit enhancement services for housing projects. It will help in improving the speed of the work to ensure that everything is completed on the promised time. By taking the help of this credit support many developers will get benefit in order to complete their pending projects.
What is the reaction from the real estate sector?
This decision was especially taken by considering the growth rate of the real estate sector. Everyone from the real estate sector has openly welcomed this new decision by the government. With the help of these credit support, there will surely be a rise in the number of people interest in buying new homes. Not only that but banks will also provide quick information about the policy rates to homebuyers so that you can get informed.
According to property consultants, this decision is one of the best steps to improve the growth rate in the real estate sector. By getting more credit support will surely boost the number of people making an investment in the property. Not only that but it will also benefit the banking sector as more people will get loans and credits.
How do the homebuyers get benefits from this decision?
The decision by the government for credit support is at the perfect moment as the real estate industry was somewhat suffering. By using the help of more credit support the buyer can invest in vehicles, homes and personal goods. Due to this move, the HFC will get a major boost to liquidity support. The developer who has their projects stuck due to financing now can get additional credit support to ensure that it is completed. So buyers will surely get the benefits of this decision by the government.
What is the effect on existing home loan customers?
As mentioned earlier that rate cuts to MCLR for all borrowers were announced by the government. It means that every current and future buyers will be able to get access to these services. The people who have home loans will enjoy a lower rate on it. This means that you will have to pay lower EMIs every month.
While this decision was supported by everyone but the real estate sector also want some special measure for the housing industry. The Finance Minister said that all such concerns will be taken into consideration in order to provide better results. Experts from the real estate sector said that these steps will help in improving the confidence of developers.
Which sectors of the industry gets to benefit from this decision?
After the announcement, there were many positive reactions from various industries which will get benefits from this decision. The decision will benefit all the industries which are linked together. The sectors like real estate, finance, and auto will be the tops which will get benefit from this decision. It is considered as a good step towards improving the growth in the industry during the time of decline in various sectors. Even though there were some people who were expecting something on a larger scale but this decision is a stable one without dumping too much trouble on the banking sector.
How the real estate sector will see a change after the decision?
In order to revive the growth in the real estate sector, the government took this important decision. With the help of these new reforms in various sectors, it will improve the growth rate. The government has also shown confidence that they will be able to cover the target for the year.
While the Indian sector has been on a downfall for quite some time now but it will surely see a rise in a few months. The market crash is due to the deteriorating of the Indian economy which will see improvements soon. By getting enough funds, the developers will be able to complete their pending projects to recover any loss that they incur.