The COVID-19 impact is strongly felt, not just on the physical health of our country’s citizens but also on the health of the economy. Businesses have come to a grinding halt almost overnight, and the shutters are expected to remain closed until the situation stabilises.
Simple activities like going to the movies, buying a house, visiting relatives, etc. have become overshadowed by the need to stay safe and socially distanced from the rest of the community.
The real estate market takes a hit
The foreground of the coronavirus crisis has people cooped up in their homes, looking out for their safety and trying to preserve their income. However, this scenario is dragging several property developers to the insolvency court due to a sharp hit in demand for real estate. After all, buying a house is not a priority to many, at least for the time being.
The government’s Rs. 25,000-crore COVID-19-focused stimulus package for builders is falling short on keeping them afloat. At this point, their only hope lies in generating revenue via house sales. All these problems are causing a standstill in completion of projects, which will further continue to slow down residential real estate in the coming months.
Though any sharp rise in the cost of homes is unlikely, the fall in demand will undoubtedly maintain prices at the current level. But, people are reluctant to apply for home loans to fund a property purchase.
RBI measures: Heart-balm for homebuyers
Ever since the pandemic has hit India, lending institutions have consistently seen a lack of credit growth owing to weak consumer demand. This is when the Reserve Bank of India (RBI) stepped in. To boost consumer sentiment for buying a house, the RBI has reduced the repo rate to 4.4%, making borrowing cheaper. Home loans interest rates have been significantly reduced, and if the figures go down further, they will likely garner consumer attention, especially first-time homebuyers.
Besides home loan rates, the RBI has even relaxed the CIBIL score home loan eligibility criterion, giving easier access to home loans. The government has also been working in tandem to boost real estate sales. For instance – The tax benefits on housing loans as prescribed under Section 80EEA were earlier applicable for loans taken up to March 31st, 2020 but have now been extended to March 31st 2021. With such measures in place, the term, easy home loans, has now taken a whole new meaning.
Home loan interest rates during the post-crisis period
The COVID-19 pandemic crisis has established the fact that it is way better to own a house than deal with the uncertainties of rented living. And to have home loans become more easily accessible during such a situation is a relief. Though it is presently ambiguous as to when the pandemic will take a turn for the better, it is highly unlikely that the relaxations introduced for housing loans will be taken down anytime sooner.
With the real estate prices remaining the same and home loan offers becoming more budget-friendly, now is the right time to apply for a home loan!
An opportunity such as this may not knock at your door twice – apply for your home loan online with India’s leading lending institution, Tata Capital. With us, you can enjoy high home loan eligibility, low-interest rates, and minimum documentation hassles. We also offer useful online home loan calculators such as the home loan eligibility calculator and the home loan EMI calculator for a thorough assessment. Now is the time for buying a house! Fund your needs today with Tata Capital’s easy home loans.