Recent reports said that the rates of home loans will remain the same as there is lesser chance for it to rise in the current situation. Bankers said that there was enough liquidity in the system and so the interest rates will not go up.
According to K. R. Kamath, Chairman and Managing Director of Punjab National Bank the bank is having enough liquidity in the system and it was not necessary to increase the interest rates of auto and home loan.
The Reserve bank of India has recently hiked its short term lending and borrowing rates by twenty five points to 6.75 per cent and 5.75 per cent which made people expect the banks to hike their interest rates. It is believed by experts that there will be hike in interest rates in order to control inflation.
According to Nagesh Pydah, Chairman and Managing Director of Oriental Bank of Commerce, the review in the interest rates will depend on the policy review. He said that the banks will have to change their rates of interest for loan, if the RBI raises the interest rates.