Refinance rates likely to be raised by NHB
By Joseph Samson
Jan 31, 2011
Print    Email    RSS   

National housing bank (NHB) is likely to raise refinance rates for housing finance companies (HFCs). The decision by the regulator of HFCs comes shortly after the policy rate hike by Reserve Bank of India recently.

"We have started the process of analysing the cost of fund situation. Though we are yet to take a call (on increasing the lending rates), there is an upward bias in the interest rate in the market," R V Verma, chairman, NHB said.

Rise in refinance rates would lead to increase in cost of funds for HFCs thereby implying a subsequent rise in home loan rates. The dependency of larger HFCs on refinance is much less than that of the smaller ones. Smaller ones which are dependent on refinance to the extent of 20-25%, would suffer a major rise in cost of funds from this rate hike.

The last time NHB had raised rates was 18 months back by 25 basis points. The present PLR of NHB is 10.25%.

"We haven't yet taken a call on increasing the interest rate. We are waiting to see how the market reacts," said V K Sharma, CEO, LIC Housing Finance Ltd.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Repaying multiple loans – Which one...
12 point conduct checklist for bank and...
An insight into the era of teaser loans
Mortgage insurance’s relevance in India
Reasons for rejection of loan application

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive