With the housing finance sector coming out with series of rate cuts time and again, and the sub-industry rates valid for just two years, loanees are just not ga-ga over what is called the super saver loan package.
The unique product follows customer research, which shows that the biggest concern of the home loan customer is his ability to manage the stress of monthly finances in the initial stage of the loan period.
Other home finance companies, however, disagree and some offer a three-month coverage of the monthly installment against the possibility of retrenchment.
Pink slips have started becoming the order of the day even among public sector undertakings.
Ashish Kumar, who has been shopping for a home loan for Rs 15 lakh, is skeptical about the structured offer, fearing that should interest rates harden in year three, he would then need to pay a higher interest.
With rising inflation on the whole, and interest rates being a function of the same, current low bias on interest rates is not sustainable. Moreover, recovery in the US is on the cards and this will push up interest rates. Once global rates start to rise, India cannot afford not to follow suit.
The foreign bank is offering a reduced interest rate of 6 per cent and 6.5 per cent in the first two years of the loan irrespective of the tenor or quantum of the loan.
It then leaves the door open to speculation as to what would be the rate of interest from year three onwards. The bank
