subject: Increase In The Sales Of New Homes With Crr Cut [print this page] The CRR (the percentage of deposits that commercial banks need to park with the RBI compulsorily) is now 4.25 percent. This move will infuse Rs 17,500 crores into the banking system.
A lowering of the CRR translates to more money with banks to lend. Coming in the middle of the festive season, this move helps banks launch attractive loan schemes to woo prospective borrowers, especially those who have been waiting in the wings for lower interest rates.Now NETWORK HOMES offers comprehensive real estate services with cutting edge technology and transformational processes. Update yourself with plotted development , sites for sale, homes bangalore and builder Bangalore through http://www.networkhomes.in only.More home loan schemes can be expected with the lowering of the CRR.
Another bright spot in the Credit Policy Review was an indication of a softening in the Credit Policy stance towards the next quarter as the inflation rate seems to be coming under control. The large fiscal deficit and the high inflation rate have been the deterrents for a softer monetary policy. The headline inflation rate, based on the Wholesale Price Index, was 7.8 percent in September. The tightening in the monetary policy has impacted the growth rate significantly and the RBI is now addressing the issue with small steps of easing the liquidity situation in the economy that will bring down the cost of funds.
Both industry and banks were asking for a softer monetary policy of late and there have been expectations of a cut in the repo rates in the near term. The move to infuse more liquidity has come in the form of a lower CRR in the recent past.
The Credit Policy has been a critical factor in the last couple of years for prospective homebuyers. The high interest rate regime and rising costs of land and property was a double whammy. However, with indications of a lowering in rates in the near term, and higher property prices in future a certainty, the festival season is a good time to make a move.
At this festival season NETWORK HOMES offers comprehensive real estate services with cutting edge technology and transformational processes. Search Property Bangalore, Villa plots Bangalore, homes Bangalore, Apartments with all amenities in http://www.networkhomes.in/searchpropertybangalore_form.php only
The market sentiment is upbeat on property and there is 'pent-up demand'. The numerous civic infrastructure projects around the city such as the seamless Outer Ring Road project and Metro Rail connectivity have changed the dynamics of the localities served. This along with the spike in input material and labour costs is translating to strong upward pressures on property prices.
Industry watchers have been bullish on property prices in the city for long. The urbanisation and commercial development in the emerging localities around the city are fuelling more residential catchments. This trend is gaining momentum with new format development such as integrated facilities.
Another recent development that is set to play a major role in the property market is the opening up of FDI to the multibrand retail sector. This will have an impact on the emerging localities and suburbs too with demand for space for logistics such as back-end offices and warehousing going up.
In the light of these developments, an easing in interest rates, as indicated, is most welcome.
