Top Rated Projects of Noida Extension
headline »
Fri, 26/10/12 – 14:05 | No Comment

Indian Property Review has announced Top 20 projects in Noida Extension. The projects were evaluated on the basis of Location, Price, Facilities and Builder’s Track Record and following projects emerged as winners with highest ratings …

Read the full story »

Commercial Real Estate

Realty Finance


Residential Real Estate


Home » Realty Finance

Rising rates hit home loans growth

Submitted by on Sunday, 28 September 2008No Comment

Rising interest rates have hit banks’ consumer finance business, particularly the housing loan segment. The dip in growth is led by a slowdown in housing loan portfolios of banks. Interest rates on home loans have increased to over 10 per cent, affecting demand. The rising real estate prices have also had an impact on the loan growth.

Credit flow to the real estate sector has also seen some drop. Despite the dip in credit growth to the sector, the Reserve Bank of India (RBI) views the 33 per cent growth to be high.

In the personal loan segment, consumer durables loans saw negative growth. The major financier of consumer durables such as GE Money exited the business with margins coming under pressure.

The consumer durables finance business has become unattractive and competitive for finance companies as large retailers are now running their own financial schemes through their own subsidiaries.

The rising defaults in the small-ticket personal loans have forced players such as ICICI Bank to exit the business. Citifinancial and HDFC Bank are also going slow in this business.

RBI is convinced that non-performing assets (NPAs) for some banks in the consumer credit, housing and real estate segments have risen, but this has no systemic implication either in terms of solvency or liquidity.

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

WP-SpamFree by Pole Position Marketing