Mortgage borrowing rates on homes in India to fall

27 October 2009

Mortgage borrowing rates for those people seeing to buy property in India continues to fall, as lenders compete with each other for greater market share.

Both Development Credit Bank (DCB) and GIC Housing are now offering mortgages with rates starting from 7.95% - below the psychological 8% barrier.

“While affordable housing is the buzzword these days, the market would get a further boost if attractive financing options are available,” Praveen Kutty, executive vice-president and head, retail banking, DCB, told the press.

Meanwhile, some other lenders, such as Central Bank of India and Punjab National Bank, have abolished mortgage arrangement fees on certain loans.

One mortgage expert, Lakshmi Vilas Bank, report that mortgage borrowers prefer to take out low interest bearing home loans from nationalised banks, rather than private banks.

VS Reddy, managing director, Lakshmi Vilas Bank, comments: “While there has been demand for home loans in the affordable home loan segment, the activity in the upper bracket has mostly revolved around restructuring or takeover of such accounts by another bank.”

See Also:   India, Marc Da-Silva, Mortgage