3 key factors on home loan markets in India
When it comes to the application of the home loan in India, many political, economic and natural factors affect it.
Also, a large number of banks and non-banking finance companies (NBFCs) have lowered down their home loan interest rates.
On that note, it would be good to check out a few factors affecting home loan in India! Read on!
- COVID-19 curbs
Due to COVID-19 curbs like curfews, increasing cases and per day hospitalization fees, and the non-availability of resources, many people have moved to their hometowns. This way, they are able to save on rent, petrol and more. Hence, it has become viable for them to afford a home loan in India and pay EMIs. A lot of people have already moved towards investing their money in real estate.
2. People are more worried about their future
Another factor that is known to drive the home loan in India market is that more people are concerned about their future. Hence, they are investing in home loans and more. Their spending capacity is impacted. But, there are norms against this to take care till the time they get a job again, and their finances are back. In such a situation, people are not sure about their future and looking to put money in real estate.
3. Demonetization
Demonetization happened years before, but it’s ripples could be felt even now. Yes, demonetization has also impacted home loan interest rate in India. Since there was a shortage of cash flow in the economy, the value of property had decreased. Also, the demand for home loans and property has increased.
You are now well aware of the key factors driving the home loan in India markets. You can check out your home loan eligibility if you want to apply in the near future. This way, you can apply for a similar amount and avoid the chances of rejections.
