Banks set to Reduce the Interest Rates
May 18, 2017 Home Loan
The real estate sector has been of benefit since demonetization. The monetary transactions in real estate sector include a lot of liquid cash that increase the cost of properties unnecessarily. With no liquid cash to invest in properties, it is expected that the prices of the properties will go down. Real estate has seen a cool down in the sales both in the primary and secondary market, it is expected that this move will revive the market.
Banks have come forward to move in synchronisation with the government, by slashing their interest rates. This is expected to raise the spirit of the buyers and nudge them to buy the property of their choice and budget.
Most banks generally pay 7 percent for one year deposit and the loan interest is around 8.9 percent for a year. Since the cost of deposits has gone down due to demonetization, the government is doing the necessary to pass the benefits of the same to the consumer. Since the government is under pressure to prove that the demonetization has been successful and the common man is hoping that after facing so much hardship due to demonetization for the last 50 day, they should reap benefits from it.
The government assured that the situation after demonetization will return to normal after 50 days since they banned the currency notes of denomination 500 and 100. The step halted the market and sales since banning the 86 percent of currency in circulation.
Banks are cooperating by reducing their lending rates or the marginal cost of lending rates (MCLR) by 5 to 10 basis points.
Bigger banks are expected to announce the reduced interest rates by the weekend due to the increased cash flow since demonetization.
According to the report by Reserve Bank of India, the deposit rose 13.6 percent, credits rose 1.2 percent since demonetization.
The deadline for depositing old currency notes was 30th December, and the chief of the respective banks are now brainstorming the measures that they can take to lure in the buyers to invest in the properties. Banks have acquired the amount of Rs 12.44 lakh crore since demonetization and it is expected that the money that they have acquired in the vaults will reduce the interest rates in various sectors. The government is keen to motivate buyers in buying and investing in various sectors like automobile, real estate, market etc.
It is expected that the reduced interest rate from the banks will further interest the buyers for the same.
Banks have come forward to move in synchronisation with the government, by slashing their interest rates. This is expected to raise the spirit of the buyers and nudge them to buy the property of their choice and budget.
Most banks generally pay 7 percent for one year deposit and the loan interest is around 8.9 percent for a year. Since the cost of deposits has gone down due to demonetization, the government is doing the necessary to pass the benefits of the same to the consumer. Since the government is under pressure to prove that the demonetization has been successful and the common man is hoping that after facing so much hardship due to demonetization for the last 50 day, they should reap benefits from it.
The government assured that the situation after demonetization will return to normal after 50 days since they banned the currency notes of denomination 500 and 100. The step halted the market and sales since banning the 86 percent of currency in circulation.
Banks are cooperating by reducing their lending rates or the marginal cost of lending rates (MCLR) by 5 to 10 basis points.
Bigger banks are expected to announce the reduced interest rates by the weekend due to the increased cash flow since demonetization.
According to the report by Reserve Bank of India, the deposit rose 13.6 percent, credits rose 1.2 percent since demonetization.
The deadline for depositing old currency notes was 30th December, and the chief of the respective banks are now brainstorming the measures that they can take to lure in the buyers to invest in the properties. Banks have acquired the amount of Rs 12.44 lakh crore since demonetization and it is expected that the money that they have acquired in the vaults will reduce the interest rates in various sectors. The government is keen to motivate buyers in buying and investing in various sectors like automobile, real estate, market etc.
It is expected that the reduced interest rate from the banks will further interest the buyers for the same.
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