The Chairman of HDFC, Deepak Parekh has said that there will be no change in the current teaser rates in home loans. Parekh was talking to media on the sidelines of an event that talked whether the teaser rates should be changed or not.
Parekh further added that if one of the top banks changes the stand on teaser rates than the others will follow too. So, it should be made a permanent affair.
He said that almost all the banks are providing teaser rates with some or the other modification. Teaser rates means lower rate of interest during the introductory phase of the home loan.
When asked as to what is the situation of liquidity, he commented saying that there is a little bit of stress on that front and it is expected that it will continue during September and October. Since the borrowing rates are lower than advances and so most of the banks are borrowing from the RBI.
The situation, he added, should become better by November since there is no shortage of funds for the government. It then will be able to give more in the form of borrowings.