
How You Can Get a Longer Tenure Home Loan
The Property Market In Kolkata Is Buoyant, Even If The Home Loan Interest Rates Are Off The Lowest Point In A Decade. However, There Is A Concern That The Interest Rates Will Be Hiked Further As The Inflation Monster Is Down But Not Out. The Inflation Rate Is Still At An Elevated State In Many Economies Of The World And The Central Bankers Are On Alert, Although Some Of Them Have Paused The Rate Increase Tempo. Interestingly, Kolkata Property Sales Have Experienced A Robust Growth Of 38% In 2022-23 Over 2021-22. However, Homebuyers Are Wary That There Will Be More Hikes And EMIs Will Rise, Although Consumer Price Inflation Has Markedly Moderated In India To A Modest 4.25% In June 2023. Interest Rates Are Linked To The Inflation Rate, And Higher Inflation Requires Interest Rate Hikes To Control It. If Inflation Is Under Control And Does Not Show Any Signs Of A Runaway Increase, Interest Rates Can Stabilize. Currently, RBI Has Taken A Pause From Raising The Interest Rates. This Has Helped To Stabilize Home Loan Rates And Consequently The EMIs. Any More Interest Rate Hike Will Hurt Inflation Is An Unpalatable Reality At The Current Moment And Consumers Are Stressed To Purchase What Is Necessary. We Have Seen That Consumer Demand Is Stagnant For Quite Some Time Except In Some Sectors. Further Price Rises Will Seriously Hurt The Purchasing Power Of The Consumers. Although The Real Estate Sector Is Not Affected Because Of The Rate Hikes, More Prospective Homebuyers Will Confirm Property Purchases If The Home Loan Rates Are Reduced. However, There Is Some Good News For The Homebuyers. Homebuyers Can Now Avail Of Home Loans For A Longer Tenure And Therefore Pay A Much Smaller EMI. This Will Considerably Help Them Fight Inflation And Manage The Monthly Family Budget. We Will Discuss This In More Detail But Before That Let’s Discuss How CIBIL Score Can Help Borrowers Get Home Loans In An Easier Manner.