Home Loan Borrowers to face Annual Burden of Rs 6,000 crores
Indian financial market is facing a slowdown in economic growth which is increasing bad loans resulting in home loan borrowers to face annual burden of Rs 6,000 crores. There is a drastic increase in Equated Monthly Installments (EMI) and this due to the rising interest rates. Meanwhile the Reserve Bank of India (RBI) has hiked key policy rates nearly 12 times from past 18 months and also floating rate for the industries has been increased by 250 bps during the financial year 2011 which has resulted in the average increase of 15 percent in EMI rates.
The impact of rising interest rates has been reflected on the EMI in concern with the borrowers who have opted for 15 year home loan payment above the sum of Rs 15 lakh. The prevailing mortgage rates is fluctuating by 11 percent resulting in the 15 percent increase in the loan borrower’s EMI. If at all the home loan rates were to increase by 13 percent the loan borrowers EMI will face a rise upto Rs 18,979. The loan borrowers who have already opted for teaser home loan scheme, the rates remain fixed for the initial 3 years and subsequently gets linked to prevailing financial market rates.
Bad Loans, Equated monthly installments, Home loan borrowers, Home Loan rates, Indian financial market, Interest rates, Mortgage rates, Reserve Bank of India, Teaser home loan
