1. High loan rates are affecting housing property in North India:

Chandigarh: Property prices in Punjab, Chandigarh and Haryana have experienced a fall up to 15% in last few months. Rising loan rates are seriously affecting the real estate market in North India as the otherwise booming real estate market experienced a fall up to 15% in last couple of months. The fall can be seen as a direct consequence of high lending rates as buyers could not avail loan easily because of the high return rate which is rising consistently. The private financers are the ones who are suffering the most in this situation as the buyers are delaying their decision of purchase due to the high rates of loan. The joint general manager of HDFC, Mr. P.C Srivastava emphasized that the rates of property has come down in some parts of northern India in recent months and the same could drop to some more extent.
The lending rates have increased by around 2% in the last year as a result of tight monetary policy adopted by the Reserve Bank of India (RBI). The real estate consultants pointed out that change in this direction can be seen from the fact that the high value properties have not experienced a good sale in the last year and have almost come to a halt. Now to face this situation and allure buyers many real estate agents have started a new policy of bearing the house loans of the buyers until the possession is handed over to them.