Prospective home loan buyers could be disappointed if they are thinking that banks will now reduce interest rates as inflation surprisingly has come down to single digit. Bankers, including country''s largest housing finance company HDFC, have indicated that interest rates on home loans are unlikely to fall in the wake of a decline in inflation.Pointing out that cost of funds, a determining factor in deciding lending rates, remains high, HDFC Chairman Deepak Parekh literally.
Ruled out slashing home loan rates. Inflation for the week ended November 1 fell by by 1.74 per cent to 8.98 per cent. Public sector Union Bank''s chief M V Nair also hinted that lending is likely to continue at the same rate as it (interest rate) is affordable now. Lending rates had gone up significantly after a series of measures adopted by the Reserve Bank to tighten the money supply in a bid to bring down inflation which was hovering around over 12 per cent in September.
Ruled out slashing home loan rates. Inflation for the week ended November 1 fell by by 1.74 per cent to 8.98 per cent. Public sector Union Bank''s chief M V Nair also hinted that lending is likely to continue at the same rate as it (interest rate) is affordable now. Lending rates had gone up significantly after a series of measures adopted by the Reserve Bank to tighten the money supply in a bid to bring down inflation which was hovering around over 12 per cent in September.
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