Home loan demand is likely to pick up this Diwali. why over here

It needs to be noted that during the festive season, home buyers invest in properties. The upcoming festival is expected to be no different especially at present when the real estate sector has made a strong comeback after the pandemic. Affordable home buying is likely to accelerate. Home loans are a great way to buy a dream home as they eliminate the need for lump sum cash. home loans Have flexible tenure and reduce the burden of collecting huge cash to buy a home as you can clear your dues through equated monthly installments (EMI) In addition, there are tax benefits of 1.5 lakh is applicable on the principal amount of your home loan under Section 80C of the IT Act.

In this financial year FY23, RBI increased the repo rate by 190 basis points to 5.9% in four consecutive policies, which forced banks and NBFCs to hike home loan interest rates to make EMIs costlier. However, the demand for affordable housing remains strong and festive season This sector is likely to pave the way for strong growth.

The 5-day Diwali festival will begin with Dhanteras on 22 October followed by Lakshmi Pujan (main Diwali) on 24 October and end with Bhai Dooj on 26 October.

According to Sahil Shah – Director, Sertus Capital and Ernest.May, the real estate sector has made a tremendous comeback after the pandemic. CY2022 is shaping up to be one of the best years for residential sales in nearly a decade, after prices remained practically flat between 2015 and 2021. Another factor driving people to buy homes is their experience during the lockdown when they were banned. To live within the four walls.

Shah said that “Today, most people want to buy/upgrade the best home for themselves. COVID-19 has also shifted the focus away from densely populated cities, towards spacious homes. For the more affluent/HNI segment. , second homes have emerged. As a sought-after option, from investment and long-term use point of view. Finally, there is a definite migration from Tier 1 cities to Tier 2, as some areas especially tech, remote Working has been adopted.”

Meanwhile, Manish Sheth, MD & CEO, JM Financial Home Loans, believes that there are factors that will drive the strong demand for home loans in the upcoming festive period. “We need to understand that as the Indian economy rises above pre-Covid levels of activity, the same trend will be observed with consumer spending,” he added.

“We can expect that more and more Indians will spend on essentials, which will include homes. Homeownership has become a necessity rather than a luxury. If we analyze the credit growth rate across different geographies and regions in India today So it is clear that we are at the beginning of a long-term upcycle and it seems unlikely that demand will subside anytime soon. Monsoon has been good this year and the mood is upbeat among consumers as well,” said Sheth .

“All these factors will strengthen the housing loan demand in the coming festive period,” said CEO, JM Financial Home Loans.

Further, Ravi Subramaniam, MD & CEO, Shriram Housing Finance highlighted that after 2 years the festive spirit is back and consumer sentiment is upbeat this festive season. The post-pandemic era has seen tremendous demand in the real estate sector.

Subramaniam said, this trend is gaining momentum during the upcoming festive season when buyers invest in properties as it is considered an auspicious period to buy a home. Moreover, riding on the wave of sustainability and potential investment, the secondary housing segment has emerged as a sought-after option for buyers. Buyer behavior has changed in cities and renting versus buying is a trend that we have seen prominently. WFH and flexible working hours have led many home buyers to move to larger complexes.

Further, the CEO of Shriram Housing Finance said, “We are witnessing a consumer shift, where buyers are keen to upgrade from 1BHK to 2BHK and 2BHK to 3BHK. Also, with flexibility in work location We are also seeing consumers buy or upgrade their homes in their home towns, thus increasing the demand for affordable home loans in Tier 2 and Tier 3 cities in the country. Confidence in future earnings, homeowners’ confidence With the pandemic-induced importance, will continue to drive residential sales in Tier 2/3/4 cities this festive season Shriram Housing Finance is one of the top 5 affordable housing finance companies in India and we are looking forward to it this festive season The demand for affordable home loans will be 25-30% higher than in the last 2 years.”

Here are the home loan rates of some of the leading banks and NBFCs

SBI Home Loan Rates

SBI is offering a discount of 15 basis points to 20 basis points as a festive campaign offer from October 4, 2022 to January 31, 2023. The interest rate under the campaign ranges from 8.40% to 9.05%. This is compared to the simple interest rates on home loans ranging from 8.55% to 9.05%.

The interest rates are as on regular home loans and will depend on the borrower’s CIBIL score.

ICICI Bank Home Loan Rates

After the RBI hiked the repo rate by 50 basis points to 5.9% on September 30, ICICI Bank increased its benchmark lending rate.

Currently, a salaried employee in ICICI Bank pays interest rates on home loans ranging from 8.60% to 9.35%. 35 lakhs, and from from 35 lakhs 75 lakhs. On the above home loan 75 lakhs, the rates vary from 8.60% to 9.45%.

The interest rates for home loans to self-employed borrowers are as high as 10 basis points to 15 basis points.

HDFC Home Loan Interest Rates

This NBFC giant offers home loans ranging from 8.4% p.a. to a maximum of 8.90%. Interest rates are applicable on Home Loans, Balance Transfer Loans, House Renovation and Home Extension Loans.

Also, under standard home loans, NBFCs provide loans to women and others on loans ranging from 8.60 – 9.10% and 8.65 – 9.15%. 30 million. Interest rate on home loan between 8.85 – 9.35% for women and 8.90 – 9.40% for others from 30.01 lakh 75 lakhs. Meanwhile, on home loan from 75.01 lakh and above, the interest rates are 8.95 – 9.45% for women and 9.00 – 9.50% for others.