Would Home Loan
RATE OF INTEREST
Impact the growth of HFC's
What about the affordable segment?
However, the cause of worry would be the increase in tenure of the loan and surely this would have moved beyond the retirement age or the norms of the financial institution in the salaried segment and in self-employed segment considering the fact that the loan amount would have been given considering the maximum allowable tenure.
The bigger concern is the stretch the families may face with the inflationary situation prevailing at this point of time.
Going forward ,should the appraisal look at the prevailing rate of interest or should actually look at 0.50% - 1.00% increase in the pricing that may come in next 12-36 months and the possibility of tenure breach and the impact of savings of the family.
At this point of time expecting the cost of construction to be stable would be fool hardy. It is important to educate and protect the future of the customer life cycle. One can argue the positive impact of downward cycle that may happen, but the question is can we predict?