Demand for home loans are going down:

By | March 15, 2011

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.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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