RBI credit policy review to boost housing

The latest bimonthly credit policy announced by  RBI will give a push to the demand side of housing by easing risk weightage on home loans.

As expected , in view of the prevailing inflation, RBI has kept the benchmark lending rates unchanged. The repo rate and reverse repo rate has been kept intact at 4% and 3.35% respectively. However, realizing the importance of housing in boosting GDP, it has eased the risk weightage to housing . Further, it has linked it to the Loan to Value (LTV) ratio of housing loans, benefitting home loan seekers. RBI has also maintained the accommodative stance to allow for further rate cuts as and when required.

Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global Group & Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” Rationalization of risk weightage on home loans augurs well for the fledgling realty sector. This will help home buyers access enhanced  capital and that too easily. It will help boost consumer sentiment amidst pick up in home sales in a run up to festive season.

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