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Tata Capital > Blog > Loan for Home > Trends in India’s Home Loan Market

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Trends in India’s Home Loan Market

Trends in India’s Home Loan Market

Are you looking for a home loan to fund your dream abode? Well, then your decision can’t come at a better time as the latest trends in India’s housing finance market favour the borrower. Let’s have a look.

The house loan interest rates are at an all-time low

Home buying has never been as affordable as it is today. Thanks to the attractive home loan interest rates! The interest rates on housing finance are the lowest in 4 decades, and the trend is expected to continue in 2021 as well.

Therefore, don't postpone your home buying plans any further to take full advantage of low-interest rates on housing finance. With Tata Capital, you can get loan rates starting at just 6.90%.

Additional Read: Why Would 2021 Have a Low Home Loan Interest Rate in India?

NBFCs continue to stay out of the repo rate ambit

Repo rate is the rate at which lending institutions borrow money from the Reserve Bank of India (RBI). So, when the RBI hikes their repo rate, the lenders’ interest rates also go up, and borrowers get housing finance at a higher ROI.

However, NBFCs continue to stay excluded from this mandate. This is why even if the RBI pushes their repo rate up, and it’s already up from last year, you can avail of home loan at a lucrative rate from NBFCs.  

Loan restructuring and moratoriums to continue

The Government of India introduced moratoriums on housing finance as a temporary relief from EMI payments to individuals adversely affected during the pandemic. Here, if you opted for a loan moratorium, you won’t be required to pay monthly instalments during the period. However, the interest isn’t waived off, and it accrues on the outstanding loan amount.

With things slowly returning to normal, authorities have introduced a loan restructuring option in addition to moratoriums. Now, borrowers can restructure their loan by renegotiating easier terms and conditions, like longer tenures or paying off only the interest component initially. 

Both housing finance moratoriums and restructuring schemes will continue this year, and you can choose the option that suits your repayment capacity.

Additional Read: What is the Meaning of Moratorium Period in Home Loan?

Online application becoming popular for housing finance

Gone are the days of waiting in a queue to meet a loan representative. Nowadays, you can go to your preferred lending institution’s website, apply for housing finance, and get your loan approved within minutes. With Tata Capital, you can even avail of housing finance via WhatsApp.

What's more, before applying, you can accurately calculate your potential EMIs and interest payable using a digital home loan EMI calculator. Simply input your loan tenure, amount, and interest rate to get the results.

Final thoughts

The borrower-friendly trends in India’s housing finance market are all the motivation you need to apply for a loan today. But, you require the right lender to get started!

Turn to India’s most trusted lending institution Tata Capital for housing finance, available at attractive home loan rates, with customisable tenures and speedy processing.

Check out our easy home loan eligibility and minimal required documents. Choose flexible EMI plans and enjoy a comfortable borrowing experience with us.

So, what are you waiting for? Apply with us and unlock the door to your dream abode!

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