Saturday, March 2, 2013

6 Effects of the HDFC Home Loan Cuts

Interest Rates
Interest Rates (Photo credit: 401(K) 2013)
The Housing Development Finance Corporation (HDFC) has announced that it will cut down its basis points for home loans. This cut has drastically reduced the amount of money you have to pay per month over a period of twenty years. This move has been initiated by the government to help the market recover. This move has made money available in the hands of the people and has some favourable effects. Given below are six effects of these HDFC home loan cuts- 

Money Available In The Hands Of Buyers

The reduction in the basis point by the HDFC has brought down the rate of interest for home loans. This means that you have to pay almost seven or eight lakhs less in total than you would have previously paid on the same loan amount. With less money to repay, buyers are now keener to take home loan in India and buy houses. 

Increased Demand For Real Estate Investment

With the market looking favourable, and the real estate market is looking better, thanks to reduced rates. More people are showing interest in the investing in homes. Property prices are rising and people are trying to buy before the prices rise further and this has increased the demand. 

Increased Buying of Property

Property prices are rising with improvement in infrastructure and development of the outskirts of the cities. In such a scenario it becomes difficult to buy property in good areas of Mumbai, Delhi. These cities have sky high property rates, and therefore investors are looking for property in tier I and tier II cities. The demand for property in these places has gone up after the HDFC’s rate cuts. 

The Young Crowd Is Buying Property

The RBI’s rate cut has favored property investment by the young crowd. The young working class earns a good amount annually and with the slashed rates they can now afford a house of their own. The reduced rate and special offers for woman’s loans, many young women are also going ahead and buying their own property in some of the leading cities of the country. 

Property Prices Are Rising

The reduced rates of loans have increased the demand for property. This in turn has increased the property prices to go up. Prices had taken a hit with low demand, but now that the market is recovering and the investors are increasing their property prices. This has in turn increased the demand for property, so that buyers like you can buy property before the prices rise further. 

Foreign Investment

Reduced rates have brought in investments from international investors. They have realized that India has a strong stable real estate market with a good rate of interest. These foreign investors have taken up some high end projects. This will also attract more investors, both national and international in the future.

These are the six effects of HDFC’s home loan cuts. It is time to make full use of it and benefit from it.


  1. Whatever the reason behind the fall of HDFC Housing Loan interest rates. The fact is that it is important for HDFC to reduce it to gain the market leadership. Because of its lowest rates presently it is most preferred bank in the financial Industry.

  2. Now is one of the times to simply a buy a home loan. The economy is looking good, the markets are at an all time high, and we have a clear mandate in the form of a stable government. In fact the main reason for the decrease in home loan interest is because people are not spending enough money. Banks want people to spend money and increase the liquidity in the market.
    Rarely do we get such opportunity, currently most banks including both PSU and private players are offering floating interest rate home loans at just below 11% and women and senior citizens are getting a even better deal. so if you always wanted to build, buy or get a flat, now is the right time. In fact, the offers will end by January 2015 to March 2015 going by the current trends. Later don’t repent.

  3. The main and important parameter on which the bank decides the interest rate is his/her credit score. Your credit score gives you power to bargain and save money on the interest rates you going to pay. To know how it is linked to each other you can also visit

  4. The home loan rate of interest has a significant impact on your EMI. Hence, analyse the loan amount and the interest rate on it to choose the one that suits your capacity. You can compare rate of interest on home loans online on web portals of lending institutes. It is a smart way to assess and manage your finances.

  5. Great information shared. Visit Finbucket to gain complete knowledge on Home Loan portal.


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