Responding to the steep and unprecedented interest rate cuts by nationalized banks led by SBI, JC Sharma, VC & MD of Sobha Limited said, “This reduction of lending rates by the banks is the outcome of huge inflow of deposits made possible due to demonetisation. This is a positive step in line with the government’s desire to revive the Indian economy.”
He further commented that the steep cuts announced in the home loans upto 90 basis points will be a shot in the arm of the homebuyers as their borrowing costs will come down significantly and their affordability factor improves simultaneously. It is expected that demand for homes will get significant boost with this welcome step.
He further added that the focus of the Prime Minister on providing homes at probably the cheapest possible rates in Indian history through the Pradhan Mantri Awaas Yojna meant for urban middle class and poor families will revive the fortune of more than 250 industries connected with the real estate sector. It is also expected to give huge boost in providing employment to construction workers.
While budget is round the corner, Sharma hoped that government will also give due importance to various demands put forth by the housing sector. He said that the economy which was temporarily and adversely impacted due to demonetisation has been used well by the government in putting back the unproductive cash into the mainstream circulation through the banking system. This step will be considered a long term structural reform which is expected to put Indian economy back on high growth trajectory.
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