As of March 2023, here are some of the latest news and updates regarding home loans in India:
Interest Rates: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 4% in its latest policy review. This means that home loan interest rates are likely to remain stable for the time being.
Pradhan Mantri Awas Yojana: The Pradhan Mantri Awas Yojana (PMAY) scheme has been extended till March 2024. Under this scheme, first-time homebuyers can get subsidies on home loans for properties in urban and rural areas.
Home Loan EMI Moratorium: The RBI has extended the home loan EMI moratorium for borrowers affected by COVID-19 till June 2023. Borrowers who have availed of the moratorium earlier can also apply for an extension.
Housing for All: The government’s Housing for All scheme aims to provide affordable housing to urban and rural poor. The scheme offers interest subsidies on home loans for low-income households.
Digital Transformation: Many banks and financial institutions have shifted to digital platforms for home loan processing and disbursement. This has made the process faster and more convenient for borrowers.
Credit Scores: Banks and financial institutions have become increasingly reliant on credit scores to assess the creditworthiness of borrowers. Maintaining a good credit score is important for getting lower interest rates and faster loan approval.
Rising Property Prices: The real estate market in India has been witnessing a steady rise in property prices. This means that homebuyers may need to increase their budget or look for properties in suburban areas.
It is important to stay informed about the latest developments to make informed decisions about home buying and loan repayment.