State Bank of India, the largest bank in India, is considering revising the equated monthly installments (EMIs) on its home loans as interest rates have risen up by two per cent in the past 1 year.

For the last two quarters, there has been a considerable rise in default cases from retail customers. The situation has forced the top loan providers in the country: ICICI, State Bank of India (SBI), and HDFC, to sell their bad home loans.

Home loan borrowers may have to wait a while before they see interest rates soften unless the Reserve Bank of India relaxes some of the fiscal curbs it has imposed on banks as Rajiv Sabharwal, Senior General Manager at ICICI bank says.

Home loan borrowers may have to wait a while before they see interest rates soften unless the Reserve Bank of India relaxes some of the fiscal curbs it has imposed on banks as Rajiv Sabharwal, Senior General Manager at ICICI bank says.

ICICI Bank has stepped up its support to realty market in Mysore by launching a 48-hour home loan-processing scheme.

The Reserve Bank of India (RBI) diktat to banks to go slow on home loans coupled with rising interest rates has resulted in home loan portfolios of large banks showing signs of a slowdown.

CARE has retained the ‘CARE A- (FD) [Single A Minus]’ rating of the FD programme of Weizmann Homes Ltd. (WHL) for the outstanding amount of Rs.2.89 crore.

The National Housing Bank (NHB) is keeping a close watch on the possible defaults that could take place due to rise in equated monthly instalments (EMIs) on home loan borrowers

Banks are inserting new clauses in home loan agreements to protect their books amid hardening interest rates and rising defaults. These loan conditions will make life a little more difficult for borrowers who are struggling to pay higher EMIs.

Some public sector banks are considering the option of making the second home loan a tad expensive. The difference in interest rates could be in the range of 25-50 basis points.

Faced with an increase in defaults on home loans, banks are beginning to feel the 'bite' after growing their portfolios at breakneck pace in the last three years.

Bankers have still to take a view on whether interest rates for this category of home loans will get the benefit of the risk weight reduction offered by RBI in its credit policy.

Public sector banks, which did not raise interest rates on home loans since January, are likely to pass on the benefit of lower capital requirement on loans up to Rs 20 lakh to customers.

The Reserve Bank pressed the pause button on rate hikes, while sending clear signals to banks for a marginal reduction in interest rate for small home loan borrowers.