Housing loans extended in the country during January-June period recorded 26 per cent growth. The interest being charged by banks on house loans is only 7 per cent as the RBI did not increase its repo rate. Because of this, 46 per cent of those who availed themselves house loans from various banks are inclined to get their loans transferred from one bank to another bank taking advantage of the low interest rate.
It is pertinent to note that mortgage loans have also registered an increase by 20 per cent. Incentives offered by state government, low rate of interest on house loans, infrastructure development amenities in towns and cities is propelling the property buyers to take action, thereby increasing the number of property transactions. In fact, 50 per cent of the buyers opted for tenure of 15 years or less for their house loans.
This indicates the mood of the buyers who want to clear their house loans as early as possible. But some public sector banks have been offering loans for tenures ranging between 25 to 30 years. In spite of that, the buyers are keen to repay the loans as early as possible.
