In a recent development, Reserve Bank of India (RBI) has raised the hopes among real estate developers with its 0.50 per cent rate cut. Experts in the real estate industry believe that this move by RBI will help in increasing the sales and ultimately leading to clear down the piled up inventory.
Upon being questioned by media that why the RBI governor has cut interest rate by 50 bps, Mr. Raghuram Rajan, commented, “I don’t know what you want to call me…Santa Claus…you want to call me hawk, I don’t know. I don’t go by this. My name is Raghuram Rajan and I do what I do.”
At the same time State Bank of India has lowered EMIs. The largest lender in the country has now lowered the lending rate by 0.40 percent bring cheers amongst homebuyers and investors. The rate of lending by SBI will now come to 9.30 % October 5, 2015 onwards.
Real estate sector is welcoming this as a positive news as of now. While commenting on the news and related effects, the President CREDAI said, “This was long overdue. Not only in real estate, but across the manufacturing industries and businesses, everyone is feeling encouraged by this announcement. The move is actually in coordination with the Prime Minister’s vision of making India an aggressive manufacturing destination.”
The festival season is now just at doorsteps and with this move by RBI, homebuyers and investors can expect that this might turn out as unforgettable Diwali to them!