Lower Rate A Business Booster In Hard Times

Home loan interest rates have reduced over the last few months – at a time when the entire world went through one of the toughest phases. The economies have just begun reviving. A lower interest rate is the need of the hour to support the nascent resurgence in the Indian economy, says SBI Chairman Dinesh Khara in an interaction with Outlook Money. Excerpts from the interview: Interest rates are going down for an extended period. How long are you expecting it to last? The home loan interest rates have been moving southwards in the last few months. Just 18 months back home loan interest rates were hovering on 8 per cent. The adoption of EBR as the benchmark for interest rates has led to a significant dip in interest rates of around 60 bps. The present low levels of interest reflect the liquidity overhang in the economy on account of various measures taken by the government to help...