Real Estate & Covid-19
Indian real estate, especially the housing sector, will observe a massive boom in the aftermath of Covid-19. Various factors contribute to this phenomenon; the main one being “reverse migration”. It is of no surprise that, good & better homes, apartments, and villas are being sought out by mostly NRIs (Non-Resident Indians). People are expected to flock in from all parts of the world including USA, Australia as well as Europe. The phenomenon will result in a higher demand for premium residential complexes which, in turn, would become beneficial for banks as home loans will be sought after as well.
In the aftermath of Covid-19, India might see a boom in the manufacturing industry as well. Expansion of such industries results in a plethora of job opportunities; a cause for migration as well. The people who seek jobs in these sectors look for residential or housing options as they would want to live near their work sites. To meet up the financials, they are bound to rely on home loans offered by various banking as well as financial institutions.
A much needed helping hand!
The Indian government has urged banks to lend a helping hand to those who require houses or residential complexes via offering home loans. RBI (Reserve Bank of India) has devised a repo rate, which forms the basis for formulating the interest rates of these home loans. Various banking institutions have devised their home loan interest rates that can be fixed or floating as per the needs of a banking customer. These home loan interests serve to attract various people who are looking to buy houses or residential complexes along with those who look forward to investing in this sector. With a boom being forecasted, as discussed before, now seems to be the right time for availing home loans and get closer to claiming your dream home.
Home Loan Interest Rates of HDFC
The Housing Development Finance Corporation (HDFC), was one of the first financial institutions to receive approval from RBI (Reserve Bank of India) an “in principle” approval for setting up a private sector bank. This approval was given to HDFC as part of a liberalization scheme, which RBI undertook in the year 1994. HDFC started as a home loan lending organization and forayed into the banking sector after being a pioneer in the field for years. The home loan interest offered by HDFC in 2015 is 9.95% – 10.45%, and in 2020 is 7.85% – 8.35%.
SBI: the genius!
On the wake of estimations & forecasting coming through based on the aftermath of Covid-19, SBI (State Bank of India) has brought forward home loan interest rates that are the lowest among all! In 2015, SBI offered home loan interest rates, the following: 9.7% – 9.75%. However, in 2020 (now), SBI is offering the following home loan interest rates: 7.15% – 7.30%.
With SBI bringing out the lowest home loan interest rates ever, this seems to be the right & best time for owning your dream homes along with indulging in some investing opportunities.