| 'Feel Good' for Customers, Developers and
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| | implications of the ploy on the banking
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| Banks, this Diwali…
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| | sector; it is finally the Indian real
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| Good times waiting for indian Real
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| | estate industry and consumers who would
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| Estate. Hard-pressed with the falling
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| | be benefited of the same.
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| demand, and slackening growth numbers,
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| | Home loan interest rate is the biggest
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| Indian banks have finally slashed
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| | and the most critical factor that drives
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| interest rates on home loans.
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| | Indian real estate, and the hike in
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| Interestingly, the banks have
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| | interest rates, of about 5-per cent in
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| appropriately chosen the period of Diwali
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| | the past couple of years, has hammered
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| to cut the interest rates and treating
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| | down the industry, a senior official of a
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| their move as a festive offer.
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| | construction group pointed out.
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| The bankers, on the positive note, are
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| | Further, as per the recent report by
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| keeping their fingers crossed and expect
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| | Assocham 'Impact of Rising Home Loan
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| that the initiative would encourage
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| | Rates', demand for the residential India
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| people to arrive at a decision of buying
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| | Real Estate fell down by an average 20
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| a house. On the other hand, real estate
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| | per cent in the past 12-months, owing to
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| developers also feel that the cut would
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| | the sharp rise in interest rates.
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| probably revive the ailing residential
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| | Therefore, softening of interest rates
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| property markets, and after Diwali, the
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| | would bring back life in the industry.
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| picture would be far clearer as to how
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| | Till this moment, India's biggest public
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| markets would behave further.
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| | sector bank SBI had dropped its interest
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| In actuality, it is in the interest of
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| | rate on home loan by 0.75 per cent to
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| banks only to reduce rates, as the growth
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| | 10.50 per cent. Private sector major HDFC
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| rate in home loan lending segment has
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| | also has also reduced the rate from 11
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| been on downslide over the past 3-year.
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| | per cent to 10.50 per cent. ICICI, Bank
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| Earlier to fiscal year 2005-06, Indian
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| | of Baroda, etc. have also followed the
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| banks were posting year-on-year (YoY)
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| | suit by reducing their lending rates
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| growth rates of 49.5%, 73.9% and 48.6%
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| | between 0.50 and 1.00 per cent.
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| respectively, however the same fell down
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| | Earlier, the rates had risen from the
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| to 29.1% in 2005-06, and 26.6% in
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| | range of 6-7 per cent of 2000-2002, to as
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| 2006-07. In absence of rate-cut, this
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| | much as 11-14 per cent in 2005-2007. Such
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| number was estimated to further go down
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| | a steep rise definitely put a deep impact
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| to 15-17% in the current fiscal. And in
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| | on the pockets of the people intending to
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| this case, the decision to curtail
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| | buy residential properties by taking home
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| interest rates was inevitable, bank
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| | loan, and the bearing was quite visible
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| officials admit.
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| | on the demand for housing property,
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| Meanwhile, whatever may be the
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| | across the country.
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