Minor rise in interest rates won't impact home loan demand: Deepak Parekh

Says rates are at historic lows now; a housing loan is a long-term loan during which rates move up and down and a customer who wants a house won't hold back just because they are rising currently

Deepak Parekh, Chairman, Housing Development Finance Corporation said a minor increase in interest rate is not going to impact home loan demand since rates are at historic lows.

Speaking at a CII event, the veteran banker said since a housing loan is a long-term loan during which interest rates move up and down and a customer who wants a house will not hold back because interest rates are going up.

The interest rate environment had remained benign for the last three years but there are indications that the cycle is turning now with some of the global central banks increasing rate. The