Relief to home loan borrowers on the horizon
Home loan borrowers may get access to an alternate window rather than to wait for the Reserve Bank of India to ease interest rates as government is planning to furnish cheap housing credit opportunities.
Indian Bankers Association (IBA) has been asked by the government to look into ways to provide affordable credit to home loan borrowers.
In order to minimise the impact of high cost of credit for housing and other sectors and address the decline in housing demand, an IBA-led committee was formed which is expected to suggest ways to reduce the home loan rates.
Borrowers availing credit up to Rs 5 lakh are not being able to repay loans despite a subsidy provided by the government as high inflation and high interest rates in the past two years have impacted the small home loan borrowers the most.
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