Finance, Forex and Investments

With interest rates up by Reserve Bank of India, will this affect your plans to buy a house?

Public Comments

1. Nope! I don't live in India, and I'm paying CASH!
2. Put this question to a currupt person. Interest rate hike will not make any difference to him.
3. yup....I was just going to buy a house on loan...we were already confused. n now we really don't know what we are going to do.
4. Yes certainly. Only Middle Class society is most affected. From March 2010, till date 12 times RBI has increased interest rates for housing loan. It was around 8.75% in March 2010 and now it is around 12.5% Nowadays in metro cities the properties are ranging from Rs.40 lakhs and above and one depends on Housing loan only for purchase of house. Housing is the basic need like food & cloths. When interest rate is 8.75% EMI per lakh for 20 years term is Rs.883/- Same EMI for the same term with increased interest rate of 12.5% is Rs.1,136/- That means for the same loan an additional EMI of Rs.253 per lakh. For those who have already availed a loan of Rs.32 lakhs will be put to additional burden of Rs.8096/- every month. Is it not going to affect the person's life while he has to provide extra or petrol and Gas very often ? Another problem for a new purchaser: Loan eligibility is calculated on the repayment capacity of the person. It is calculated @45 to 50% of their take home salary. For 32 lakhs @ 8.75% EMI is 28,256/- but @ 12.5% is Rs36,352/- Suppose a person is earning Rs.60,000/- in an IT company employment, @ 8.75% interest rate his loan eligibility is around Rs.32 lakhs. But the same person at an increased interest rate of 12.5% is eligible to avail only Rs.24.8 lakhs. making a deficit in eligibility of Rs.7.2 lakhs. That means, the person gas to arrange 7.2 lakhs additionally from his own sources to buy a house which is almost impossible for middle class men. So our government & RBI are virtually demolishing the dream of owning a house by middle class society. Let the concerned understand this. http://www.apnapaisa.com/loan/loan-advice-india/emi-rates-calculator.html