Home loan declines in India

With the increasing housing problems and taking it seriously State Bank of India decide to launch new home loan policy .The increasing demand of home loans made State Bank of India and seeing the inability of borrowers to repay loans on time. State Bank of India decided to launch new home loan policy. The bank is considering increasing rate of interest on home loans that would surely affect borrowers. The demand of home loans has surely risen up high. The bank has decided to keep interest of 8.5 till a loan of Rs 5 lakh and 9.25 upto loan of Rs 20 lakh.

The withdrawal of teaser loans has resulted in slight declination in application of home loans. The rising property prices also led the demand of housing loans go down. According to data issued by State Bank of India it is evident that after the interest rates have been made high and withdrawal of teaser loans has brought slight moderation in home loans demand. The inability to clear loan on time for longer periods becomes a serious problem for banks. Therefore now Banks will be reviewing its home loans policies periodically. One would have to wait to get property loans as it can not be given instantly now and high rate of interest attached with it.