Home Loans To Get Cheaper, Solution For Stuck Housing Projects Next Week: FM

New Delhi: Loans for homes and other products well get cheaper soon as banks will pass on the benefits of recent RBI rate cuts to the borrowers by way of MCLR reduction, Finance Minister Nirmala Sitharaman has said.

Banks are also in the process of launching Repo Rate linked home loans which will bring down the EMIs for the borrowers, she said. 

The minister also said that efforts are being made by the government for the stuck home projects to be completed. The exact steps to help the harried home buyers would be announced next week. 

More than 1.74 lakh housing units are stuck in delayed projects in just top seven cities of the country with a value of Rs 1,77,400 crore, according to a report by ANAROCK property consultants. Of these 1.74 lakh units, around 66 percent are sold which means that the buyers have partially to completely paid for the property and are waiting to get possession.

Home buyers’ association Forum For People's Collective Efforts (FPCE) has recently written a letter to the Prime Minister Modi for resolution to realty mess in the country and urged him to take steps for completion of stalled housing units so that the buyers can get some relief.

The Reserve Bank of India has cut the Repo Rate four consecutive times this year totaling 10 basis points, making way for commercial bask to lower their lending rates for various kinds of loans However, the commercial banks have lowered their lending rates only by 20-30 basis points so far.