RBI Governor Shaktikanta Das-led MPC hiked the policy repo rate by 50 bps to 5.40% with immediate effect
"This whammy comes along with the inflationary trends of primary raw materials, including cement, steel, labour, etc., that have recently led to a rise in property prices," an expert noted.
PNB and ICICI Bank have raised their internal benchmark or marginal cost of fund-based lending rate (MCLR) by 15 basis points (bps) and 30 bps each effective June 1.
Recognising the importance of the housing sector and its multiplier effects, it has been decided to extend the applicability of these guidelines till March 31, 2023, the Governor said.
HDFC continues to have the largest number of home loan customers of over 2.7 lakh, who have availed benefits under the Credit Linked Subsidy Scheme.
“The India real estate market is on an upward cycle which bodes well for all of us. The big star of the real estate sector continues to remain residential housing in India.