Following the recent decision to keep the benchmark lending rate unchanged at 5.25%, many current and potential borrowers are assessing how this may affect their home loan interest rates and monthly installments. Purchasing a home is among the most significant financial commitments individuals make in their lifetime, and for most people, taking a home loan is the primary way to achieve this goal. Although choosing a longer loan tenure can reduce the monthly repayment burden and make home ownership more manageable, it also increases the total interest paid over the life of the loan. This makes interest rate movements a crucial factor in long-term financial planning. The benchmark lending rate represents the cost at which financial institutions borrow funds from the central monetary authority. When this rate is reduced, borrowing becomes cheaper for lenders, allowing them to pass on the benefit to customers in the form of lower loan interest rates. Conversely, when the rate is kept unchanged, lending rates typically remain stable unless other market factors influence them. Most floating-rate home loans are linked to external benchmarks, meaning changes in the benchmark rate are transmitted relatively quickly to borrowers. As a result, any reduction in the benchmark rate usually leads to lower interest rates and reduced monthly instalments for these loans. Loans linked to internal benchmarks, on the other hand, tend to experience a slower adjustment, with changes reflected over a longer period. Fixed-rate home loans remain unaffected by changes in benchmark rates, as their interest rates are locked in for a predetermined period. Borrowers with such loans continue to pay the same monthly instalments regardless of rate movements during that time. Overall, a stable benchmark rate offers predictability for borrowers, but understanding how different loan structures respond to rate changes is essential for making informed decisions about borrowing, repayment tenure, and long-term financial commitments.

The Metrozone housing project in Koyambedu has come under the scanner of the Central Bureau of Investigation (CBI) for suspected violations of subvention schemes and alleged cheating of homebuyers through a nexus between developers and financial institutions. The economic offences wing of the CBI, New Delhi, has registered a case against the developer of the Metrozone project, its promoters and directors, along with unknown officials of a bank and its housing finance arm. The case has been registered on charges of fraud and corruption, following directions issued by the Supreme Court. According to the First Information Report (FIR), the directors of the real estate company, which is currently undergoing the Corporate Insolvency Resolution Process (CIRP), allegedly entered into a criminal conspiracy with banks and financial institutions. Under this arrangement, the entire home loan amounts were allegedly disbursed in the names of prospective homebuyers in violation of regulations laid down by the Reserve Bank of India and the National Housing Bank. The FIR further states that the developer allegedly defaulted on paying pre-EMIs under the subvention scheme, despite tripartite agreements that clearly stipulated that the developer would service the EMIs until possession of the flats was handed over to the buyers. The alleged failure to honour this obligation resulted in severe financial distress for homebuyers, who were forced to bear the loan burden without receiving possession of their homes. The Metrozone project was launched in 2015 with assurances of world-class amenities, modern infrastructure, and time-bound completion. However, the project failed to meet these promises, prompting affected homebuyers to approach the courts for relief. The petition filed by the homebuyers was included in a larger batch of similar cases alleging collusion between banks and developers. These petitions were heard by the Supreme Court, which in March directed the CBI to register criminal cases in connection with 20 such petitions where preliminary inquiries had already been conducted. The court also instructed the agency to take up investigation into the remaining 25 cases without conducting any preliminary inquiry. The Supreme Court further ordered that the CBI may seek assistance from the respective state police authorities during the investigation, making it clear that state agencies are bound to comply with and support the probe. In addition to the project in Chennai, the investigating agency has also registered cases in connection with two other housing projects promoted by the same developer group in Bengaluru, indicating a wider pattern of alleged irregularities under similar subvention schemes.

Chennai’s residential real estate market posted strong growth in Q1 2026, with home sales crossing 4,763 units, marking a 9% year-on-year increase from 4,357 units in the same period last year. This performance positioned Chennai as the fastest-growing residential market among major Indian cities during the quarter. New residential launches also gained momentum, rising 12% year-on-year to 5,112 units, compared to 4,576 units a year earlier. Residential property prices increased 6% year-on-year, indicating sustained buyer demand and market confidence. The market recorded healthy growth in both sales and new launches, driven primarily by strong traction in mid-income and premium housing segments. This trend reflects evolving homebuyer preferences and steady end-user demand, as buyers increasingly opt for larger homes and higher-quality developments. Chennai’s residential market showed a clear shift in demand across price categories, moving away from the affordable housing segment toward mid and premium homes. The sub-Rs 50 lakh segment witnessed a sharp 39% decline, signaling weakening demand in the affordable category. In contrast, the Rs 50 lakh–Rs 1 crore segment grew 19% year-on-year, while higher ticket-size homes gained significant traction. Notably, the Rs 2–5 crore segment recorded a strong 52% year-on-year surge, highlighting growing interest in luxury housing. In Q1 2026, residential demand was led by the Rs 50 lakh–Rs 1 crore segment, which accounted for 2,278 units, making it the largest contributor to overall sales. This was followed by the Rs 1–2 crore segment with 1,240 units sold, and the Rs 2–5 crore segment with 557 units. In the premium and luxury segments, homes priced between Rs 5–10 crore registered 74 units, while properties priced above RS 10 crore accounted for 21 units, underscoring continued demand at the upper end of the market. On the supply side, new housing supply declined marginally by 2% to 94,855 units during the quarter. Launch activity slowed across most major cities, with exceptions seen in Bengaluru, Chennai, and Ahmedabad, where launches remained relatively resilient. Other markets experienced sharper declines in new supply, reflecting cautious developer sentiment. Demand across major cities continued to remain skewed toward premium housing. Sales of homes priced above Rs 1 crore increased 11% year-on-year, even as the sub-Rs 50 lakh and Rs 50 lakh–Rs 1 crore segments declined by 23% and 12%, respectively. The Rs 1–2 crore segment played a key role in driving growth, rising 10% year-on-year and accounting for 29% of total residential sales. Higher-end categories also showed strong momentum, with sales increasing 17% in the Rs 2–5 crore segment, 12% in the Rs 10–20 crore segment, and a sharp 80% surge in the Rs 20–50 crore bracket, highlighting the growing appetite for premium and luxury housing across urban markets.

Residents of a residential locality have announced their decision to boycott the upcoming assembly election as a form of protest against prolonged delays in the issuance of computerized subdivision land ownership documents. The residents state that despite submitting multiple representations to senior administrative authorities over several years, no concrete action has been taken to resolve the matter. The locality comprises around 250 families who purchased residential plots through legally registered sale deeds during the early to mid-1980s. Following the purchases, houses were constructed after obtaining all necessary approvals from the relevant government departments. The residents have been living in these houses for decades and have consistently paid property tax, water charges, electricity charges, and other statutory levies without default. According to the residents, applications for conversion of existing manual land records into computerised subdivision records have been pending since 2009. Despite fulfilling all documentation requirements and repeated follow-ups with various departments, the applications remain unresolved. The residents claim this prolonged delay has caused significant hardship, affecting their ability to access loans, register property transfers, and secure legal clarity over ownership. Frustrated by what they describe as administrative apathy, around 600 eligible voters from the area have collectively decided not to participate in the forthcoming election unless the issue is addressed. The residents emphasize that the properties were originally purchased through a recognized housing society and that all construction was carried out only after securing proper approvals, including the issuance of manual land ownership documents at the time. They assert that their protest is not politically motivated but is aimed solely at drawing attention to a long-pending civic grievance that has remained unresolved for more than a decade.

The state administration has taken a significant step toward expanding digital public services by introducing a new system aimed at making document registration simpler, faster, and largely paperless. Anyone who has previously gone through the registration process knows how demanding it can be—requiring multiple office visits, extensive paperwork, and long waiting hours. This new initiative is designed to transform that experience and make the process far more convenient and efficient for the public.

What’s New in the Updated System?

This is not a minor change but a major upgrade that introduces several practical and user-focused features:

• Documents can now be submitted online, reducing the need to carry physical copies
• In certain cases, in-person visits to offices are no longer required
• Secure identity verification is enabled through digital and biometric methods
• The system can automatically prepare legal documents, helping save time and minimize errors
• Once registration is completed, documents are made available digitally almost immediately
• Certified copies can be downloaded online without long delays
• Payment processes are simplified through digital and scan-based options
• Property details can be checked more easily, and application status can be tracked online

Services Beyond Property Registration

The digital platform is not limited to property-related services. It also allows users to:

• Register marriages
• Apply for records related to property liabilities
• Access various other registration-related services from a single platform

A Step Toward User-Friendly Governance

This initiative highlights how public services are gradually becoming more accessible and citizen-friendly. The primary focus is on saving time, reducing paperwork, improving transparency, and minimizing the need for physical interaction. At the same time, maintaining manual service options remains important to ensure that individuals who are less comfortable with digital tools are not excluded from essential services.

The State Real Estate Regulatory Authority has observed that labor shortages, material constraints, and approval-related issues cannot be accepted as valid reasons for project delays. The authority held the developer in violation for cancelling an allotment and subsequently reselling the same unit. The Authority directed the developer to allot the buyer a comparable apartment within the same project, ensuring that the specifications, terms, and pricing remain identical to those agreed upon at the time of the original booking. According to the order, the buyer had booked the apartment in March 2021 after being assured that possession would be handed over on or before 30 June 2021. Based on this assurance, the buyer paid the booking amount, followed by a substantial further payment in line with the agreed construction-linked payment schedule under the agreement executed in March 2021. The Authority stated that it is the sole responsibility of the developer to arrange adequate labor, procure construction materials, and obtain all necessary statutory approvals. It further noted that since the project was already registered with the regulatory authority, all required approvals should have been secured prior to launching the project. The Authority concluded that the reasons cited for the delay were unconvincing and amounted to mere excuses. As the buyer had complied with the payment obligations under the agreement, the developer was held fully responsible for the delay in handing over possession of the apartment.

The Monetary Policy Committee of the central bank, in its meeting held on April 8, decided to keep the repo rate unchanged at 5.25 per cent, extending the pause after a series of interest rate reductions over the past year. For home loan borrowers, this decision brings much-needed stability at a time when interest rate movements have been closely watched. As most home loans in India are linked to external benchmarks such as the repo rate, an unchanged policy rate means that equated monthly installments (EMIs) are likely to remain steady in the near term. Banks are also expected to maintain their current lending rates unless there is a significant change in liquidity conditions or a shift in the overall monetary policy stance. This stability allows both existing and prospective borrowers to plan their finances with greater certainty, without the immediate concern of rising EMIs. While the latest decision does not provide fresh relief in the form of further rate cuts, borrowers have already benefited substantially from the cumulative reduction of 125 basis points in the repo rate since early 2025. These reductions have translated into lower borrowing costs, meaningful EMI relief, and significant interest savings over the full tenure of home loans—particularly for borrowers whose loans have fully adjusted to the lower rate cycle. For instance, on a home loan of Rs 50 lakh with a tenure of 20 years, the reduction in interest rates has resulted in an EMI saving of roughly Rs 3,050 per month, along with a total interest saving of about Rs7.34 lakh over the life of the loan. In the case of a Rs 75 lakh loan, the monthly EMI savings are approximately Rs 5,800, while the overall interest savings amount to nearly Rs 13.94 lakh. By holding rates steady, the current policy decision ensures that these gains remain intact, offering continued relief and predictability for home loan borrowers. 

Home loan borrowers with loans linked to the repo rate received temporary relief on Wednesday as the central bank decided to maintain the repo rate at 5.25% after the conclusion of its three-day Monetary Policy Committee meeting. The decision means that interest rates on floating-rate home loans linked to external benchmarks are likely to remain unchanged for the time being, allowing borrowers to continue servicing their loans at existing EMI levels. However, experts caution that the relief may be short-lived, as interest rates could rise in future policy reviews if inflationary pressures persist. The repo rate is the rate at which banks borrow funds from the central bank. Changes in the repo rate directly influence lending rates across the banking system. When the repo rate is cut, banks’ borrowing costs fall, enabling them to pass on the benefit to customers through lower loan interest rates. Conversely, an increase in the repo rate usually leads to higher borrowing costs and increased EMIs for borrowers. Most new floating-rate home loans are linked to the repo rate or other external benchmarks, making them the quickest to reflect changes in monetary policy. Loans linked to the Marginal Cost of Funds-based Lending Rate (MCLR), on the other hand, experience a slower transmission of rate changes, with adjustments taking place over a longer period. Fixed-rate home loans remain unaffected by repo rate movements. With the repo rate unchanged, banks are expected to maintain the status quo on lending rates, as the impact of previous policy actions has already been fully absorbed by the system. Borrowers looking to reduce their interest burden may explore refinancing options. Refinancing involves transferring the outstanding loan to another lender offering a lower interest rate, subject to eligibility criteria such as a strong credit score and a consistent repayment record. While the current policy stance provides short-term comfort to home loan borrowers, future rate movements will depend on inflation trends and broader economic conditions, making upcoming policy meetings crucial for borrowers with floating-rate loans.

As the country’s central bank prepares for its first monetary policy review of the 2026–27 financial year, home loan borrowers are closely tracking developments, particularly around interest rates. The six-member monetary policy panel will begin its deliberations on Monday, April 6, with the policy decision scheduled to be announced on Wednesday, April 8. Policy decisions on the repo rate play a crucial role in determining lending rates across the banking system. When the repo rate is reduced, banks typically pass on the benefit to borrowers by lowering interest rates on both new and existing home loans, which can lead to reduced monthly installments. Conversely, a pause or hike in rates keeps borrowing costs elevated. Market experts broadly expect the policy panel to maintain the current interest rate levels in the upcoming review. This cautious outlook is driven by ongoing inflationary pressures, volatility in global commodity prices, and continued geopolitical uncertainty. Rising crude oil prices and currency fluctuations are adding to imported inflation risks, prompting policymakers to remain vigilant. Economists believe the central bank is likely to closely monitor inflation trends and economic data before considering any further rate action. While economic growth remains resilient, concerns over price stability are expected to shape a guarded policy tone, with emphasis on inflation forecasts and growth projections rather than immediate stimulus. Since early 2025, the repo rate has seen cumulative reductions of 1.25 percentage points, offering some relief to borrowers. However, interest rates were kept unchanged in multiple subsequent policy reviews, reflecting a shift toward stability amid global economic uncertainty. The upcoming policy meeting is expected to follow a similar approach, prioritizing caution over aggressive intervention. For home loan borrowers, the outcome of this policy review will be important. Even a decision to hold rates steady will directly influence loan pricing, EMIs, and refinancing decisions in the months ahead. Borrowers are advised to watch the policy announcement carefully to assess its impact on their repayment plans and long-term borrowing costs. The central bank typically conducts six bi-monthly policy meetings each financial year, during which it evaluates interest rates, liquidity conditions, inflation outlook, economic growth, and other key macroeconomic indicators to guide monetary policy.

A housing finance company has disclosed that a financial sector regulator instructed it to recognise additional bad loans amounting to Rs 933 crore for the period ending March 2023, following a supervisory inspection.

Initially, the company had reported gross non-performing assets (NPAs) of Rs 2,271.36 crore for that period. However, during the inspection, the regulator identified additional stressed assets of Rs 933.58 crore that were not classified correctly. This resulted in the company’s total gross NPAs rising to Rs 3,204.94 crore for the same reporting period.

Reason for the divergence

The discrepancy arose due to loan restructuring carried out during the financial year 2022–23, which the regulator later determined did not comply with applicable regulatory norms. The issue was linked to two project finance loan accounts.

In these cases, the company had reduced the interest rates on the loans for competitive business reasons. At the time of restructuring:

• Both loan accounts were classified as standard assets
• All repayments were regular
• There were no payment defaults

However, under regulatory guidelines, such restructuring did not qualify for continued standard classification, leading to a retrospective reclassification during the inspection.

Current status of the loans

• One loan account, originally amounting to Rs 598.39 crore, has since been fully repaid
• The second loan, which was significantly larger earlier, has now been reduced to Rs 67.39 crore
• The remaining loan continues to be serviced regularly and has not shown signs of stress

Financial impact

The company clarified that:

• There is no immediate financial impact arising from this disclosure
• The affected exposure has largely been resolved or reduced
• The disclosure is being made purely for transparency and governance purposes

The company emphasized that the announcement reflects its commitment to strong governance standards and regulatory compliance, rather than a deterioration in asset quality or ongoing credit risk.

The upcoming policy review in early April is expected to result in no change to the key lending rate, as policymakers remain cautious amid persistent global inflationary pressures and uncertain growth conditions. This anticipated pause in the rate cycle is likely to help keep home loan instalments stable in the near term, offering borrowers a degree of relief and predictability in their monthly outflows.

Concerns around stubborn inflation continue to influence the policy stance, particularly due to elevated energy prices and ongoing supply-side disruptions linked to geopolitical tensions in key oil-producing regions. These factors have increased the risk of renewed price pressures, prompting decision-makers to avoid premature easing. As a result, maintaining the current rate level is seen as a balanced approach that supports economic stability while keeping inflation risks in check.

For borrowers, especially those with housing loans linked to floating rates, this status quo means monthly repayments are unlikely to rise immediately. While any meaningful reduction in borrowing costs may still be some distance away, the pause provides short-term comfort and allows households to plan their finances with greater certainty amid a volatile global environment.

In India, it is common for the names of wives, mothers, or other female family members to be included in property ownership documents. This may be done for convenience, family considerations, or to acknowledge their involvement in purchasing the house. However, under the provisions of the Income Tax Act, merely being a co-borrower on a home loan does not automatically entitle an individual to claim income tax deductions.

For home loans, tax deductions are available on both the principal and interest components under the old tax regime, and in limited cases under the new tax regime. Under Section 80C of the old regime, repayment of the principal amount qualifies for a deduction of up to Rs1.5 lakh per financial year. Additionally, under Section 24B, interest paid on a home loan can be claimed as a deduction up to Rs 2 lakh, provided the property is either self-occupied by the taxpayer or rented out. If the property remains vacant and is neither self-occupied nor let out, these deductions are not available.

Under the new tax regime, deductions related to home loans are largely restricted. Only the interest component, up to Rs 2 lakh, can be claimed—and that too only if the property is rented out. No deductions are allowed for principal repayment under the new regime.

Importantly, income tax rules link home loan tax benefits directly to ownership of the property. In addition, the ability to claim these deductions depends on whether the individual has actually contributed financially to repaying the loan. Simply being listed as a co-owner or co-borrower is not sufficient. Tax benefits can be claimed only by the person who has serviced the loan, meaning the individual who has paid the principal and/or interest from their own income.

If an individual has not made any financial contribution towards the repayment of the loan, they are not eligible to claim the associated tax deductions. In the event of a tax assessment or dispute, tax authorities may require documentary evidence to establish both ownership of the property and proof of loan repayment, including details of the funding source.

In summary, home loan tax benefits for principal repayment and interest are available only when an individual is both a co-owner of the property and a co-borrower who has actually repaid the loan. Furthermore, these deductions for self-occupied property apply only under the old tax regime. The new tax regime allows deductions solely for interest on let-out properties, subject to prescribed limits.