1.Home loan buyers are feeling the pinch of the successive rate hikes as existing customers are seeing a hike in their EMIs and tenures and new customers will see home loan eligibility going down by almost 35 per cent.
2.Home loan interest rates have gone up by 5% in the past 3 years. Until now consumers were fighting rate hikes by simply increasing their tenures; so the EMIs would remain constant. But that too has now got stretched to the maximum with average home loan tenures rising from 13 to 20 years. Now it's EMIs which are being stretched in
3.Customers who would actually see an EMI hike will be close to about 40% and home loan companies endeavour is to reduce this burden by first increasing tenures and then only if home loan companies do not have an option they will pass on the increase in EMI," opines Rajiv Sabharwal, Sr GM - Retails Assets, ICICI BANK.
5.New customers are not much better off. Two years ago if you could get a one lakh rupee loan for your home, now it is down to 65,000 rupees.
6.Every 1% hike in the interest rate, reduces loan eligibility by 7% for every lakh of rupees. Consecutive rate hikes have reduced this further.
7.Little wonder that banks expect growth in the home loan business to go up by no more than 20 per cent this year, the lowest in five years.
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