Low-Cost Homes Hit by Rate Hike Spree

Affordable homes back-to-back interest rate hike with demand slack-earning sharply in the last few months.

Moderating demand is the intended consequence of the RBI trying to slow stubbornly high inflation through the 250-basis point (bps) cumulative repo rate hike since last year.

The higher rates would impact low-income borrowers more than their wealthier counterparts.  

Demand for affordable housing loans has dipped more.

Home loans of up to ₹30 lakh formed 45% of loans disbursed between January and February, down from 60% between April and June 2022.