Loans for second house may get costlier

October 30, 2006	(Be the first to rate this story!)  Loading ...
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If you are planning to buy a second house, you may need to speed up your decision. With RBI trying to tighten credit flow to the housing sector, some state-owned banks are debating raising rates on loans to those buying a second house.

If the move — termed as ‘informal discussions’ by a finance ministry official — goes through, interest rate on the loan for your second house could be higher than what you are paying for the first.

Sources said it has been discussed by boards of some PSU banks after the finance ministry asked them to review their exposure to various sectors to ensure that real estate did not corner most of the credit flow, thereby affecting productive segments like manufacturing, agriculture and infrastructure. In fact, some of the banks came back to the finance ministry with the suggestion. But the house is divided.

Source from Times of India
http://timesofindia.indiatimes.com/

News Published Under:   Real Estate India, Delhi, Banking and Finance, Home Loans |

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