Increased Home Loan Interest Rates in India

Increased Home Loan Interest Rates in India
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If you have freshly invested in property this year then you are in the beat of increased interest rates over home loans in India. Major Banks and housing finance companies here have decided to increase the mortgage rates with effect from mid April. Even the government banks like State Bank of India have planned to go by the wind of increasing interest rates. If you compare the data from last 3 years, the interest rate has gone up by more that 3 percent which is a real heat on pockets of buyers. These increased rates will ultimately affect the monthly installments paid by consumers over home loan.

Experts from real estate sector believe that this hike is happening due to the turn of events which are experienced by people in this country that finally forced the Banks to increase their rates. The effect will be primarily seen on particularly diffident cities rather than affecting metro cities of India. They also suggest calculating the equated monthly installments (EMI) considering approximately one percent hike in total interest. The best possible solution for fresh buyers from this crisis is to gather private sponsorship or funding in order to decrease the total loan amount.

This inflation will die down in due time but for now fresh investors have to face the heat of the dramatically increased interest rates. According to experts, it is advisable to purchase property as early as possible because soon all the other housing finance institutions will go down the path of increasing interest rates.

 

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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