The interest rate on consumer loan is unlikely to come down in at least next 18 months, said Keki Mistry, Vice-Chairman and Chief Executive Officer (CEO) of HDFC Ltd, in an exclusive interview with Moneycontrol's Banking and Finance Editor Dinesh Unnikrishnan.
"In a floating loan, it doesn't make any difference if you take a loan when rates are high or low. Because if they are high today at some point they will come low and vice versa. So, in a 15-year home loan cycle, rates go up or down at least 3-4 times," said Mistry.
In the interview, Mistry said the demand for housing loans is expected to remain strong going ahead despite the high interest rate environment. “There is a sustained demand for housing loans. The home loan penetration in India in the housing finance market is 11 percent. There is a huge growth potential and it will take time to reach 20 percent,” he said.