Now, FM looks at home loan rates

Now, FM looks at home loan rates

BS Reporter / New Delhi March 7, 2008

Hints at lower rates up to Rs 20 lakh.

Finance Minister P Chidambaram has indicated that interest rates on housing loans of up to Rs 20 lakh may be lowered as risk rates on such loans are at the bare minimum.

"I shall certainly bear in mind that there is public demand that interest rates for those who borrow housing loans up to Rs 20 lakh must be lowered," the finance minister said during his post-Budget interaction with the Associated Chamber of Commerce and Industry (Assocham).

Chidambaram said 80 per cent of the home loans raised are well within the range of Rs 20 lakh and defaults among such borrowers are extremely low.

The finance minister