Recent reports said that demand for home loans have gone down recently. The market players have said that potential buyers are waiting for the high property prices to go down. They also fell that the high-interest rates could be one of the reasons for the lesser demand for home loans. The downtrend is more prevalent in metro cities such as Mumbai and Delhi where the prices of property are too high.
According to the data released by the RBI until the month of February, there has not been much of a slowdown in the home loan portfolio.
Union Bank of India’s Executive director, Mr S. S. Mudra, said in a press release that there is a slowdown in the demand for home loan because of the increasing prices of property. He also said that the slowdowns in home loan are seen mostly in cities like Mumbai and in Delhi than in the places of south India. He said that people are waiting for the fall in property prices before making purchase decisions.
Mr. Monish Shah, Director, Deolitte said that the main reason for the slowdown is due to the rise in the interest rates and hike in property price.