Rate hike not to hit home loan business, says HDFC
Housing Development Finance Corporation (HDFC) has said slowing economy and rise in interest rates are unlikely to dampen the appetite for home loans in the country.
“GDP growth slowing will not impact, and interest rates have not reached a stage where people should stop buying homes,” HDFC Managing Director Renu Sud Karnad told Deccan Herald.
She said a 375 basis point hike in two years is not something one should make hue and cry about, as there was a time when the interest rates were as high and people purchased homes even the. Her comments came as a major boost to housing industry after some apprehended two consecutive quarters of fall in Indian economy might affect demand for home loans.
A recent data from the National Housing Bank and the Reserve Bank of India too sugested that in the first six months (April-Sep) of current financial year showed that home loans by 54 housing finance companies was 10 % higher and was close to Rs 50,000 crore against Rs 45,000 crore a year ago.
The demand for housing finance has improved due to availability of affordable houses on the periphery of metros and in Tier-II and Tier-III cities, experts opine.
HDFC’s recent scheme of a fixed-cum-floating rate scheme aimed at offering HDFC home loan at a fixed rate for the initial three or five years and at a floating rate thereafter, was a big hit, according industry players.
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