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RBI rate hike to make home, auto loans dearer (Lead)
New Delhi, June 6 (IANS) Housing and auto loans are set to become costlier with India’s central bank raising its key interest rate for the first time since January 2015, though industry stakeholders feel it will have limited impact on housing loans but in the automobile industry the cost of funds for manufacturers would go up along with loans for buyers.
The RBI on Wednesday raised its key interest rate for the first time by 25 basis points (bps) to 6.25 per cent.
“As buying decisions are generally not taken based on fluctuations in home loan rates, there will be very little effect on the real estate market. However, for some home buyers looking for making a very low-ticket size purchase decision, there may be some tentativeness in the decision making…,” said Ramesh Nair, CEO & Country Head, JLL India.
Overall, there would be minimal impact on the end-user in the housing sector, Nair added.
“The hike may seem to dampen sentiments in the market, but in terms of real estate, it may have little or no impact. As almost all home loans these days are on floating rates, the rise and fall in home loan rates does not impact the performance of residential real estate sector much and tends to balance each other in long term,” he said.
But Joe Verghese, Managing Director, Colliers International India, feels the potential increase in interest rates would impact the developers more than the home buyers.
“The potential increase in interest rates is unfortunately going to impact the developers more than the end-users (home buyers). Not only do their cost of funds increase, the rate increase can impact velocity of sales as fence-sitters will see this as another reason to postpone their home buying decision,” Verghese said.
“In the past, developers have tried to get sales boosted by throwing in more goodies and offers but these schemes have had limited success,” he added.
Khushru Jijina, MD, Piramal Finance & Piramal Housing Finance thinks the reform would give a boost to affordable housing, real estate sector and help in economic growth.
“Amongst the reforms announced, an important announcement was made regarding home loans upto Rs 35 lakh being considered as priority sector lending. This would give a boost to affordable housing real estate sector and help in economic growth,” said Jijina.
But the automobile industry feels the move would impact both manufacturers and buyers.
“From an automobile industry perspective, not only will the increase in rates impact the cost of funds for manufacturers, but also the customers who are seeking loans from banks to purchase cars. This is in addition to the burden of substantial increase in fuel costs due to the rising cost of imported oil. But we believe the Government knows the facts on the ground and will take steps as appropriate,” said Shekar Viswanathan, Vice Chairman & Whole-time Director – Toyota Kirloskar Motor.
— IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.