At present, one of the most concerning issues on every Indian mind is the sharp declination of the Indian economy. Tackling this unprecedented breakdown, adequate measures are being taken by the Finance Minister Nirmala Sitharaman to save the sinking Indian economy. Let’s deep dive into some of the keen points on the overall effects on the real estate sector:
Direct Linking of Repo Rates to Interest Rates
Every year RBI is cutting down the repo rate (the rate at which RBI lends money to individual banks). But the banks were not passing the same benefits to the borrowers like any concessions on the lending rates. In the latest meet, To bring around the growth, the banks have been proposed to transfer the repo rates cuts benefits by the RBI to borrowers.
This move ensures that repo rates are directly linked to interest rates. Hence Equated Monthly Installments (EMIs) on home loans will go down, encouraging more to make their housing dream come true.
As of the latest update, SBI and Syndicate Banks have already linked their home loans to repo rates, which has reduced the interest rates. For time to go, other major banks are about to join the expedition providing relief to the borrowers.
More Transparency in Loan Closure Procedure
A lot of home buyers apply for home loans due to financial instability. But, despite the fact they have paid their entire loan amount, there are going through a stressful process to get clearances, They struggle to get their loan closure documents or other secure documents from PSBs.
To induce more transparency and hassle-free transactions, Nirmala Sitharaman in her new clause stated that all public sector banks should submit the home papers to the borrowers within 15 days of repayment of the loan amount. There will also be an online tracking of loan application made either with the bank or NBFCs.
This move is purely an act of justification that will benefit the profit the borrowers, as they get to track their loan applications at-ease from anywhere. This will enhance the trust-factor of the buyers, and also reduce any harassment issues related to mortgaged assets.
Additional Support to NBFCs & HFCs
Another significant aid, to the retail sector, is that NBFCs get more liquidity with National Housing Bank releasing an additional Rs 10,000 Crores. As per the new measures, the NHB can stretch further its credit lines to NBFCs to Rs 30,000 Crores instead of Rs 20,000 Crores.
For the purchase of pooled assets of NBFCs & HFCs, the partial credit guarantee scheme would be up to Rs 1 Lakh Crore. It will be monitored at a priority level by the individual banks. This is expected to give relief to HFCs and construction financing companies.
To maintain hassle-free transactions, NBFCs can use Aadhaar authenticated bank KYC. It is to reduce the burden on borrowers as they are not needed to go through the entire process on KYC to get a loan from NBFCs. And to support the financing practices, banks will provide more credit to NBFCs.
Given the emerging threat of an economic crisis, the Indian Govt is taking every possible effective measure to tackle the situation. Certain of these, are creating more positive vibes for the home buyers. It is speculated more such clauses, may come front in the upcoming days for the real estate sector.
Do you want to know more such trending real estate news? Browse PropertyAdviser.in, India’s first-ever property directory to find all the latest properties for sale in Hyderabad with accurate approved bank loan information that helps to select, compare and pay the lowest EMIs for your dream home.
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