Sunday, August 12, 2007

India reality check 2: 13.5% is the current rate of home loan interest

Yes you've read the headline right, 13.5% is the current fixed rate at which you can take a housing loan. And many are doing it. This means the smallest slowdown in the Indian economy and salary growth slowing down will cause a lot of heartburn to a lot of people and the default rate will be huge.

People in India are going crazy taking loans because till 7 - 10 years ago it wasn't easy getting loans; and since the economy has been booming last few years, they haven't been hit.

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