Escalating property prices and rising home loan rates in India are the two factors that fuel the predicament of the home loan seekers of India, truly a double strike against the home loan seekers. The recent developments in the housing industry have made the housing loans in India, exorbitant for the middle class. Not only has this, but a rise in construction materials like cement has also contributed in high-ceilinged property prices. New RBI norms have urged builders to pass the costs of raising funds to consumers by increasing the costs of their projects.

Recent past has seen an explosion in the home loan mart. This boom was mainly due to very low home loan interest rates since the last three years, but now with the increased interest rates, the developments have been dampened, particularly, with RBI clamping down on the housing loans with a view to check the real estate bubble. Indian Banks too have now become more stringent in scrutinizing home loan applications following RBIs directions. It is really an interesting fact that there will not be any incentive for the Indian Banks and housing finance companies to chase high value home loan seekers, whom they have been luring with lower interest rates.

Even the government has added two its two bits to the worsening plight of the home loan seekers by a controversial circular to tax developers under the taxation regime. All these factors have only added fuel to the considerable fire that property prices have been on for the last year and a half. The plight of the home loan seekers doesnt ends up here; he cannot get the desired home loan on affordable home loan interest rates and to worsen the quandary, the consumers cannot avail the title documents and the NOCs in the desired formats by the home Loan banks.

But, bells have not started ringing yet. The investment experts and the bankers still assure that the home loan seekers should not panic and confirm that home loans are still attractive enough as there seems no short term increase in loan rates. Banks are still in process to expand their portfolios. In other words, the party is not yet over for the actual home loan consumers and owing a home is not a cloud-cuckoo-land.

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