The last two months of 2016 created much of a topsy-turvy situation for the country. Surprise demonetization by PM Modi left the entire nation in utter confusion as to what would be the consequences, especially for the real estate sector. And now that the wave has started subsiding and things are slowly coming back to normality, positive effects of demonetization on real estate can be seen already.
Much as predicted, home loan rates have been drastically cut down by major banks like SBI, Union Bank of India, PNB, State Bank of Travancore, IDBI Bank and Indian Overseas Bank. Home loan is expected to become cheapest over the last 6 years, as other banks will follow suit. SBI, being the largest lender, largely affects the lending scenario. It has cut down the effective rate from 9.10% to 8.6%. [Read more…]