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Stimulus for borrowers

The inherent belief of the powers-that-be appears to be that a new home loan is the only way to provide a fillip to economic activity

Big listed real estate companies drive profits home in a dull market
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Harsh Roongta
Say, there is a double-income salaried couple with a household income of Rs 1 lakh a month, seeking a 20-year loan of Rs 50 lakh. If they approach State Bank of India (SBI), they will give two options – repo rate linked loan rate or RLLR. In this, the equated monthly instalment will be Rs 42,000 (8.05 per cent). In the second option, based on marginal cost lending rate or MCLR, they will have to pay Rs 44,000 (8.60 per cent). However, the latter will remain fixed for 12 months. Which option is better? The first one, as a Rs

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First Published: Aug 28 2019 | 11:02 PM IST

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