Historically home loans have been priced between 150 basis points (bps) and 200 bps higher than government securities, even now they are priced in pretty much the same range, Gagan Banga, VC & MD of Indiabulls Housing Finance told CNBC-TV18.
The Reserve Bank of India (RBI) has cut the standard asset provisioning rate for individual housing loans to 0.25 percent from 0.40 percent. Thereby seeking to reduce the interest rates on home loans. Is a rate cut war brewing?
In an interview to CNBC-TV18, Gagan Banga, VC & MD of Indiabulls Housing Finance spoke about the latest happenings in his company as well as in the sector.
Historically home loans have been priced between 150 basis points (bps) and 200 bps higher than government securities, even now they are priced in pretty much the same range, he said.
He believes the move by RBI last week is signalling towards how all the arms of the government, be it the RBI, the government or various other financial regulators are treating housing more as the central economic policy.
“The government has done a lot around affordable housing and now to even encourage the slightly more premium housing, RBI has treated this as a counter cyclical measure,” he added.
For Indiabulls Housing, affordable housing segment will be growing between 30 percent and 35 percent. “We are reasonably confident that the home loan book will continue to grow at 30-35 percent,” said Banga.For full interview, watch video...Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.