This Diwali, home loans demand is likely to accelerate despite EMIs getting costlier. Here’s why

Home loans have flexible tenures and reduce the burden of gathering hefty cash to buy houses since you can repay your dues via equated monthly instalments (EMI).

This Diwali, more Indians are likely to seek long-term investments, and buying a house will be one of them. Such in return will drive home loans to demand and further accelerate the credit growth of financial institutions like banks and NBFCs.

The October month is packed with long holidays due to back-to-back festivals. After Navratri, citizens are now waiting for the cheer of the Diwali season. In the post-pandemic era, the demand in the real estate sector is buoyant and consumer sentiment has turned upbeat for this festive season. This Diwali, more Indians are likely to seek long-term investments, and buying a house will be one of them. Such in return will drive home loans to demand and further accelerate the credit growth of financial institutions like banks and NBFCs.

Buying affordable homes is likely to pick up momentum. Home loans are one of the mediums for buying a dream house as they eliminate the need for lumpsum cash. Home loans have flexible tenures and reduce the burden of gathering hefty cash to buy houses since you can repay your dues via equated monthly instalments (EMI). Also, there are tax benefits of ₹1.5 lakh applicable on your home loan principal amount under section 80C of IT ACT, among others.

The 5-days Diwali festival will begin on October 22 with Dhanteras followed by Lakshmi Pujan (Main Diwali) on October 24 and to end on October 26 with Bhai Dooj.