Bankers fear loss in business despite demand for home loans

Bankers are wary of the rising interest rates and fear that they will lose business in spite of the demand for housing loans, and rising ratio of non-performing assets (NPA). The concerns are the high interest rates on housing finance and realty prices.

Apnaloan.com Research Bureau

14 Sep 2007

Bankers are wary of the rising interest rates and fear that they will lose business in spite of the demand for housing loans, and rising ratio of non-performing assets (NPA).

The concerns are high interest rates on housing finance and rising realty prices. Reportedly, property prices have risen by 300 per cent in North India since 2001-02, 150 per cent in the West. This hike has impacted 22 to 23 per cent consumers.

Interest rates have risen by 4 to 4.5 per cent since 2004 which has led to a slowdown in demand for houses.

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