APRIL 8, 2007: For most, the interest rate increase
has been a bolt from the blue. If you’ve taken
the plunge and splurged recently on that luxe 4,000-sq
ft penthouse apartment, you’ve been hit really
hard. And if you’ve been window-shopping to
upgrade your car or for expensive gizmos, chances
are you’ve put your plans on hold.
Economic Times commissioned a survey to global market
research company Synovate immediately after Monday’s
interest rate hikes were announced by housing finance
companies and banks to take a peek into the mood of
the nation. And you may have guessed it right, the
results are definitely a dampner on the urge to splurge.
In fact, such has been the reaction to the latest
round of hike that 71% of those surveyed feel that
it will hit their household expenses, while another
sizeable chunk (71%) feels that they would not opt
for a housing or personal loan now. And a majority
of them (58%) point an accusing finger at the government
for the present predicament. In fact, a big chunk
of unhappy home loan consumers feel that the hike
in interest rates could have been avoided, especially
since it comes close on the heels of a steep rise
in commodity prices. As for auto and personal loans
— no one appears to be in a big hurry to go
for one now.
The survey conducted among nearly 850 people, comprising
CEOs, top management, middle-level executives and
self-employed professionals in Ahmedabad, Bangalore,
Chennai, Chandigarh, Hyderabad, Kochi, Kolkata, Lucknow,
Mumbai and Pune, finds that 64% feel the hike could
have been avoided, while only 27% have a contrary
view. On the other hand, about 9% said they don’t
know. A sizeable 71% admit it’s hit their monthly
household expenditure, and about 40% say they’ve
been affected “a lot”, while only 7% are
“not at all” affected.
Now, if you feel it's but natural for borrowers
to whine about feeling squeezed, here is what
some head honchos have to say. Says Shivinder Singh,
CEO & MD, Fortis Healthcare: "The interest
rates for personal, housing and car loans have been
rising for the last few months; this isn't
good for the economy. While inflation won,t
be reduced, the country's economic growth will
be hurt. The aspiration of the common man to improve
his quality of life will be adversely affected."
Source: The Economic Times
