Banks Need To Reduce Lending Rate
Manoj Gaur, MD, Gaurs Group and Chairman, Affordable Housing Committee, CREDAI (National)
The latest 40 basis point reduction and the earlier rate revisions by RBI are a welcome move for sure which should help the real estate borrower in the long run if passed on and implemented by all banks and financial institutions. But, We are seeing that the benefit is not being passed on and the effect on actual lending rate is little or almost negligible. So, till the time RBI makes it mandatory for banks to reduce lending rate at the same time, these reductions will have negligible effect on real estate market which is reeling under COVID-19 situation.