Real Estate News
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All Eyes on Government During the Festive Season
When it comes to home buying, most Indian prefers buying and investing in property during the auspicious time of the festivals. The months from October to January are the festival season and the home buying during this time increases by folds. The developers take advantage of the same as well and provide many offers to grab the attention of the potential home buyers. Some developers provide discounts while some waiver the registration and stamp duty charges. Some offer foreign tour while others offer extra benefits that can help the home buyer like providing few appliances etc. Although, given that the real estate sector of the country...
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SBI to Link the Home Loans with Repo Rates from October 1st
India’s biggest bank, State bank of India, said that they would link the repo rates to the home loans from October 1st, 2019. The news came on September 23rd, stated that the bank would link the repo rates to the floating rates of interest for micro, small and medium enterprise, home and retail loans. Since RBI has urged the banks to provide the loan borrowers the benefit of reduced home loan rates, SBI became the first bank to introduce the repo rate based home loan rates. On September 4th, RBI directed all the banks to link the repo rates to the rate of interest for the benefit of the customers. Reduced rates of interest: RBI has b...
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FM Announces Rs 20,000 Crore Funding for Projects Stuck in the Middle
On 14th September, the Finance Minister, Nirmala Sitharaman, announced few more measure to revive the slow real estate market. The primary concern for the buyers has been the projects that are stuck for resolution as they have run out of money. To solve the issue, the Finance Minister announced the finding of Rs 20,000 crore for the projects that are stuck in the middle. The government of India will invest Rs 10,000 crore, and the outside investors will contribute the same amount. The funds allocated will be managed by the professionals of housing and banking sector. The main object behind the move is the finish the stalled projects and to gi...
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This Festive Season Brings Joy to the Potential Homebuyers
Buying a house is a once in a lifetime investment for most of us and what better time to buy the property during the festive time. According to the reports, the sales of the properties peak from October to December. It starts during Navratras and goes on till new years. The developers also come up with various offers and discounts to boost sales during this time of the years. We list down the things that one can expect from the festive season and the things one shouldn’t: What to expect this festive season if you are a potential homebuyer? Recently RBI has reduced their repo rates, and it is at an all-time low at 5.4%. The RBI has u...
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SBI Cuts the Interest Rates to 8.15 Percent
The Reserve Bank of India brought down their repo rates urging the public and private sector banks to reduce their loan rates as well. This is the fourth time in the year that RBI has reduced their repo rates. Previously the loan borrowers were not getting the benefit of RBI reducing the repo rates, and the government took the measures in the step and asked the banks to link their repo rates to the interest rates. The biggest bank in India, the State Bank of India, has followed suit and reduced their home loan rates. The one-year marginal cost of fund-based lending rate (MCLR) to 8.15 percent by implementing the ten basis points reduction....
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Online Database of Indian Cities to be Created by 2024
The government of India has been making continuous efforts to revive the real estate sector of the country. And in another bid forward towards it, the government of India has decided to create an online database of the Indian cities by 2024. The database will be available to everyone free of cost and will focus on all the minute details of the cities, including infrastructure, education and health facilities, etc. However, the Union Housing and Urban Affairs Ministry (HUA) might plan ‘Exchange of Database’ scheme under which the agencies might charge for commercial use of data. By March 2020, the first phase of the website will laun...
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Why Right Now is a Good Time to Invest in the Property
There is no denying the fact that the real estate sector has been reeling with low sales and unsold inventory. Some of the most prominent builders of the country are facing insolvency, and the government is offering relief packages to the home buyers to boost the sales. The market is also in a state where there are many opportunities for buyers and investors. We discuss the benefits that are available for the buyers: Price correction: overvaluation of the immovable assets is the reason, the price in the market has remained unchanged. A decline in per sq foot rate has been observed in Gurugram and Noida. The price in Noida has declined fro...
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RBI Directs Banks to Link the Loans to External Lending Benchmarks
On September 4th, the RBI directed the banks and financial institutes to link their loan rates to the external lending benchmarks. The move is set to bring more transparency in the transmission of policy. Banks will have to option to link the home loan either with the repo rate, the three or six-month Treasury yield or with any other benchmark published by the Financial Benchmark India Pvt Ltd. RBI has directed the banks to reset the loan liabilities at least once every three months after they make the switch. RBI has also given banks and financial institutes the liberty to decide the spread over the external benchmark. State bank of In...
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Impact of RBI Holding or Increasing the Repo Rates
Homebuyers who have been keeping a close watch of the market and the RBI’s reduction in repo rates cannot be happier. The repo rates are now at the all-time low at 5.4 percent. The repo rate is the rate at which the RBI lends out the loan to the other banks which means that if the RBI is reducing their lending rates, then the banks have a higher margin to reduce their interest rates that can ultimately benefit the loan borrower. The RBI has directed the banks that from 1st October they will have to link their loan rates to the repo rates to pass the benefit to the home loan borrowers. The loan borrowers are rejoicing as the home loan rat...
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Home Loans to Get Cheaper: FM Assures
On 23rd August, the Finance Minister Nirmala Sitharaman announced that the banks have agreed to launch loan products linked to the RBI’s repo rate and they will also pass the rate cut benefits to the loan borrowers. In the statement made, she said that the banks have decided to launch repo rate-linked loan products. This will result in reduced EMI for housing loans - this means the moment the reduction happens; it will directly benefit end customers. Linking the repo rates to the home loan will directly benefit the loan borrowers. The move made by the government shows that they are making a constant effort to revive the real estate secto...
