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Home A-Loan? It’s a party out there Even rising inflation has failed to defer the great Indian middle-class’ aspirations of buying their dream home. Surprising it may seem, but despite the slowdown in the economy, the home loan segment is alive and kicking with possibilities. According to industry estimates, the home loan market witnessed an average growth of 20-25% in August, thanks to small-ticket buying. And with festive season around the corner, housing finance companies are gearing up to meet an increased demand as they expect real estate developers to dole out huge discounts to lure first-time buyers. Banks across the board confirmed that they have witnessed a considerable increase in the number of queries from people seeking home loans. “These are typically the ones who are looking to buy residential property in the festive season. They have already been assured by real estate developers of a good discount, and are making now sure that they get their documents ready in time,†a senior banker explaining the phenomenon said. It should be mentioned that the Reserve Bank of India hiked the cash reserve ratio (CRR) from 8.75% to 9% in the first week of August. Deepak Parekh, chairman of HDFC, the country’s largest housing finance company, believes that with the great Indian middle-class kicking in, home loan market should be able to weather the storms of a slowing economy. “We has seen a growth of 22% in the home loan segment in August, vis-à -vis the year-ago period. People are waiting for monsoons to get over. Already, there’s been an increase in the number of queries for home loans. We expect the market to pick up significantly in October when festivities begin,†Parkekh told SundayET. Mr Parkekh’s optimism is visible in growth numbers. For the April-July period, HDFC saw a 28% growth in the home loan segment. The company’s average loan size this year has been Rs 15 lakh and 95% of the borrowers were salaried employees. Says Rohtas Goel, CMD of Omaxe Group: “The hike in repo and CRR rate has impacted the demand in the residential market. But this does not change the fact that people need homes and opportunities to invest. It only results in people buying smaller homes in less-preferred locations, which is what’s happening now.†Visit our site at – http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Latest News - http://investorline.co.in/blogger/?q=aggregator/categories/1 News Resources - http://investorline.co.in/blogger/?q=aggregator/sources Newscatcher- http://catcher.investorline.co.in/ Newsgroups- http://groups.google.com/group/india-investor --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
