In this article I am writing about the interest rates increase for the home loans in the coming months. It is expected that there will be rise in the interest rates from this year end. This article explains the reason why rates will be increased and the current situation of home loans industry. If you have any doubts please post it in the comments section. Subscribe to our future articles here.
Home Loans Interest Rates
As we know, the inflation of the country is already in the positive mark and it keeps increasing. It is predicted that home loans interest rates may rise with in next 6-8 weeks of time. It seems it will be on this year end.
When inflation is increasing, RBI will increase the interest rates. It will do that by this year end or early 2010. If you are planning to buy the new houses, please plan it accordingly.
Restriction on Home Loans
Nowadays getting home loans are not easy. Banks are imposing so many restriction to the customers to eligible for the loans. In the recent economic crisis, many people lost jobs and many got reduced their salary. Because of this reasons customers not able to pay the EMI regularly. It leads to the huge loss for the banks.
Previously 40-50% as the payment for the EMI is accepted by the banks. But, now they are not accepting more than 30% as the MI. This will also reduce the loan amount for the customers.
No Tax Exemption for Home Loans from 2011
If you have taken the home loans, you are aware that there is tax exemptions for the principal and interest payment on the home loans. Our govt. is working on the new proposal called as “New Direct Tax Code” which is expected to be implemented from the year 2011. It has lot of changes from the existing tax system. One among them is “Completely Removing the tax exemption for the Home Loans“. The proposal is in draft stage and make have changes. If that happens, it is going to be very difficult to take the home loans.
I hope this article will be useful to know the future of the home loans and its interest rates. If you have any doubts please post it in the comments section. Thank you for reading this article.
Subscribe to our future articles here.