Disposable incomes to decline moderately on rising EMIs
With the rise in repo rates, the cost of funds for banks and housing finance companies has risen as well, but rising rates are being passed on to the consumer. HDFC has raised its lending rates thrice this year. With the latest hike, lending rates have gone up by 45 bps. RBI, on the other hand, over the last two policy meetings, has hiked rates by 50 bps. On a Rs 40-lakh, 15-year loan at an interest rate of 8.6 per cent, the latest 20 bps points hike would raise EMIs by Rs 500 approximately.