New Delhi, Aug. 10 -- In line with the government's commitment to revive growth in India's economy, the RBI has lowered the repo rate to a record level. This should help pump-prime the overall economy and also provide the real estate sector much needed relief. Lower interest rates along with the higher tax deduction on home loan interest payments that was announced in the Budget in July, would encourage homebuyers to take out home loans to buy property. Additionally, the RBI's move to enhance the exposure limit of a bank to a single NBFC will infuse more liquidity into the system for NBFCs, which in turn will help real estate developers who are in desperate need for capital at this point of time.
Manoj Gaur, MD, Gaurs Group & Chairman, Aff...