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Is there any move to spare housing loans from the interest rate hike?

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Is there any move to spare housing loans from the interest rate hike?

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The high interest rate is not new. In 1999, 2000, and 2001 the home loan rate was between 12 and 13 per cent due to monetary steps to moderate inflation. It came down subsequently. Commercial real estate and housing are experiencing very rapid credit growth. In fact, it is over 60 per cent. Such rapid credit growth is likely to lead to overheating. It is in our own interest to moderate rapid credit growth. So we increased the price of credit. Yet, we have requested banks, and we have asked the RBI to explore ways in which people who take loans, say up to Rs.10 lakh or so, to be spared from this increase. Eighty per cent of the home loans are between Rs.8 lakh to Rs.10 lakh. I think the banks and the RBI will take measures to see that this segment, 80 per cent of the borrowers, is spared any increase in interest rate.

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