A recent press report said that the loans from housing finance groups are expected to become dearer in the future. Mr. R. V. Verma, Chairman and Managing Director, National Housing Bank told the press that the will be effects on the demand for home loan will be effected due to the growing interest rates and high property prices.
He said that the property prices in many of the large cities are going high and so potential buyers are postponing their plans to buy a house. He added saying that the home buyers are more worried about the current property prices than the growing interest rates. He suggested that the builders should clear their inventory of unsold housing stock by cutting prices.
Mr. Verma said that loan from housing finance companies (HFCs) could get dearer and that NHB has planned to increase the general provisioning requirement for these companies for their portfolio of ‘standard retail housing loans’.
He said that the provisioning requirement of NHB will be increased from 0.25 per cent to 0.40 per cent.
National Housing Bank regulates the activities of almost 55 housing finance companies based on regulatory and supervisory authority derived under the NHB Act, 1987.