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Hi all,
Guys can you please tell me ,are the home loan rates are going to be changed after the April 2011?
The 2011-2012 budget News says "low- cost housing loans of Rs 15 lakh will be eligible for 1% interest subsidy, which will help in increasing the demand for such housing. In budget speech, Finance Minister Pranab Mukherjee said he is liberalising the existing scheme of one per cent interest subvention on housing loans up to Rs 15 lakh, where the cost of house does not exceed Rs 25 lakh. The existing
Is this mean we will have a lower interset rate compaired to the present one?
Can any one who has the knowledge about the issue explain in detail?

Venu

Its trivial to answer your Q. Firstly where do you get an apt within 15 lakhs(Total Cost) in a city like bangalore within 15Kms range from the City Centre?. If you really want within this budget, you need to go beyond Hosakote, Devanalli, Doddaballapur, Bidadi, Magadi...etc

For instance, Jerry Rao ( An Investor)is constructing Low Cost housing for an average Price of 6 Lakhs(for around 400 to 450 sq.ft size) for lower middle and lesser community, is almost 40 Kms away from Bangalore. Also Purvankara Builder's sister Concern "Provident Housing" is giving 2 BHK for Rs. 16 lakhs in the name of Bangalore north, which is actually the outskirts of Doddaballapur Town. Think again, whether we can call this as Low cost Housing Projects in Bangalore?? if you feel its worth to live there and commute to Bangalore for Your earning, feel free to take your decision.

As for as you basic question relating to Rate of interest after April 2011, Currently there is a cash crunch in all banks and hence banks are raising their deposit rates in order to attract the deposits from Customers. They're paying interest anywhere between 9 to 10.5% for deposits. There lending rates will be more than the deposit rates by atleast 2%. So definitely bank loan intersts rates will not come down in the next 1 year.