Reduction in Home loan rates- CREDAI’s demand to RBI
Confederation of Real Estate Developers‘ Associations of India (CREDAI) is demanding a pro-growth outlook in the policy rates. RBI (The Reserve Bank of India) today announced that the amount of deposits that banks are required to park in government securities will be reduced and unlocked about Rs 40,000 crore of funds. However since the key rates remain unchanged, the realtor’s body CREDAI expressed disappointment over RBI’s monetary policy and sought cut in interest rates on home loan to boost housing demand.
CREDAI National President C. Shekar Reddy mentioned that the CREDAI appreciates the positive step taken by the RBI to reduce SLR (Statutory liquidity ratio) by 50 bps (basis point). This step will release a liquidity of Rs 39,000 crore for the banks. He also mentioned that CREDAI understands that the RBI’s priority is to fight inflation, however if the home loan rates are not brought down, then the real estate industry will suffer.
CREDAI Chairman Lalit Jain mentioned that the RBI should consult CREDAI to structure practical policies on lending to housing projects. He also mentioned that a long term status quo on interest rates would not help the prospective home buyers. If the government wants to provide shelter to all as per its election manifesto and move the economy in an upward direction, then they will have to work towards the home loan rate reduction.
Source- The Economic Times
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