Home Loan Rates May Raise in India With The Falling Rupee

Home Loan Rates May Raise in India with the Falling Rupee
Looking for houses is difficult, and finding one that you and your family members actually like is
no piece of cake. Trying to find one big enough to please everybody, but small enough so that
you are not bankrupt at the end of the purchase is a task at a whole other level. In order to
afford such a dream home, you may be required to take out a loan from a financial institution
to help you pay for the expenses. Home loans in India come with certain benefits. The loan can
be taken for a period up to thirty years, giving you enough time to repay the Property Loan, and
it also comes with tax benefits, meaning that if you have to repay such a loan, you may get a tax
rebate.
Today, however, the economy is not doing too well and the value of the Indian Rupee has
fallen. This means, that more Indian Rupees are required to equal to a single US Dollar. This
kind of fall in the Rupee has obvious implication on foreign trade and import and export, but
the common people also have to face the consequences of such a fall in the value of the
currency. Fuel is bought in Dollars, and so fuel prices are rising.
This means that slowly but surely the price of almost all commodities will rise and the people
are left to buy goods that are becoming more and more expensive. The price of luxury goods
like cars, or plane tickets is also rising, and while these are not essential items, a house is
essential.
Unfortunately, while the price of real estate may not increase immediately, several banks are
looking to increase the rate of interest on their house loans. This means that even if you took
out a loan 10 years ago, you may have to pay a larger sum as an EMI for the next 20 years to
repay your loan. While this is bad news for the Indians living in India, the NRI's are taking quick
advantage of the economic situation.
They have promptly swooped in to buy houses with the Rupee low, so that they get more value
for their money and have to pay less over all.

While buying your house, if you do require a loan, it may be a good idea to take one out, as
even though the rate of interest may increase, it is also possible for you to get a raise at your
job so that you will be able to pay the interest and EMI without it affecting your financial
situation too much.
Always remember to read all the terms and conditions before you agree to a particular loan.
[Source: http://ezinearticles.com/?Home-Loan-Rates-May-Raise-in-India-With-The-Falling-
Rupee&id=7993069]