India May Ask Banks to Lower Home Loan Interest Rates
Finance Minister Palaniappan Chidambaram said Indian banks should consider lowering rates on some housing loans while the central bank maintains high borrowing costs to curb inflation.
The government may ask banks to lower interest charges on housing loans of up to 2 million rupees ($50,000), Chidambaram said at a conference in New Delhi today. The Reserve Bank of India’s policies are aimed at curbing inflation while also boosting economic growth, he said.
Chidambaram today sought to allay concerns that banks would have to shoulder the cost of the government’s planned 600 billion rupee write-off of rural debt. The Bankex Index has slumped 12 percent since Chidambaram in his budget speech on Feb. 29 proposed the loan waivers.
Source: Bloomberg
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