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Housing Finance Companies Face Risk as Banks Slash Lending Rates
August 22, 2017
As the banks continue to slash their savings rates, housing finance companies may face intense competition in near future if the cuts move to the MCLR (Marginal Cost of Lending Rate).
According to India Ratings and Research, which is one of the leading rating agencies in India, it’s possible that MCLR gets slashed by 25 bps for the private banks, and as much as 35 bps for the public-sector banks. Consequently, housing finance companies could struggle to expand their portfolio in the large ticket housing segment.
