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.

The finance ministry on Wednesday said that the committee of creditors will be allowed to invite land authorities to its meetings to provide inputs on regulatory and land-related matters under insolvency regulations, a move expected to help speed up bankruptcy resolution involving hundreds of real estate projects. Replying during a discussion on proposed insolvency law amendments in the upper house of Parliament, it was stated that the changes limit the scope of adjudication at the case admission stage and prescribe stricter timelines to accelerate resolution and maximize the value of stressed assets. The legislation has been approved by both houses of Parliament, paving the way for its adoption after presidential assent. It was also clarified that the proposed framework for handling cross-border insolvency cases will include adequate parliamentary oversight, while the mechanism for resolving insolvency within corporate groups will have sufficient safeguards to prevent misuse. Under the new provisions, land authorities will be able to participate in committee of creditors meetings and comment on the legitimacy of land and property involved in insolvency cases. Of the 565 real estate cases admitted under the insolvency framework, 111 cases involving 162,320 homebuyers have been resolved, while another 210 cases remain under resolution. However, it was noted that some companies may still face liquidation if no viable resolution is possible. To further expedite the process, the amendments propose that insolvency cases be admitted within 14 days and resolution plans approved within 30 days, with written reasons required in case of delays.

A real estate developers’ association has urged the aviation authorities to speed up the issuance of no-objection certificates for construction projects. Delays in granting these approvals are affecting construction timelines and significantly increasing project costs in the city, the association said. In a formal representation sent to airport officials, the association stated that developers are facing prolonged processing times for clearances, even when applications fully comply with prescribed height and obstacle limitation norms. These delays are impacting statutory approvals from planning agencies, leading to the postponement of several projects. This, in turn, raises costs and hampers overall urban development, the association noted, pointing out the cascading impact on the real estate sector. While acknowledging the importance of aviation safety, the association stressed the need for greater clarity and predictability in the approval process. It suggested the introduction of indicative timelines, better communication regarding application status, and a coordinated mechanism to help developers plan projects more efficiently. The body also expressed willingness to engage with authorities to better understand procedural requirements and identify ways to streamline the system. Developers have additionally sought faster clearances from defence authorities in areas with military presence. In fast-growing localities such as Avadi and Tambaram, several buildings are reportedly awaiting approvals, slowing development in these rapidly expanding zones.

A civic authority in the national capital stated on Monday that the proposed implementation of a new property tax assessment system could significantly reduce the tax burden for property owners. According to officials, the revised method may lower property tax by approximately 30 to 50 percent, with the greatest relief expected for older and self-occupied properties. This proposed change forms part of a broader set of legislative amendments introduced recently in Parliament. The bill seeks to modify provisions of an existing municipal law governing property taxation and administration in the capital. The objective of these amendments is to simplify compliance, reduce disputes, and create a more transparent taxation framework. Explaining the advantages of the new assessment system, a senior official of the civic body said that the revised method takes into account several additional factors that were either absent or inadequately reflected in the earlier system. One key feature is the age factor, which provides tax relief to older buildings by recognizing depreciation over time. As a result, owners of long-standing properties are expected to benefit substantially. Another major feature is the bifurcation of property usage, which allows different portions of the same property to be assessed separately. For example, commercial and storage areas within a single building can be taxed individually based on their specific use, rather than applying a uniform rate to the entire premises. This approach is expected to result in fairer assessments and reduce grievances among taxpayers. The system also introduces self-assessment and online payment mechanisms, enabling property owners to calculate and pay their taxes digitally. Officials believe this will make the process simpler, reduce human intervention, improve transparency, and minimize conflicts between taxpayers and authorities. Addressing concerns raised by business owners, the official acknowledged that most traders in major commercial areas are already compliant with various tax obligations. Many of them regularly pay indirect and direct taxes and operate within the formal economy. Despite this, they often feel unfairly treated during inspections and assessments, which has contributed to mistrust between taxpayers and enforcement officials. The new system is expected to address these concerns by reducing discretionary powers and encouraging voluntary compliance. In terms of revenue, the civic body reported that it collected over Rs 1,000 crore in property tax during the previous financial year. With the proposed reforms and improved compliance mechanisms, officials expect collections to increase significantly, potentially reaching around Rs 1,350 crore in the current year. Overall, the proposed amendments aim to balance taxpayer relief with revenue growth, ensuring that property taxation is more equitable, efficient, and transparent while fostering trust between citizens and municipal authorities.

A newly commissioned greenfield integrated cement manufacturing facility has commenced operations, marking the producer’s entry into the North Indian market and increasing its total grinding capacity to 24.1 million tonnes per annum (MTPA). The plant features a clinkerization capacity of 3.3 MTPA along with a cement grinding capacity of 2.5 MTPA. With the commissioning of this facility, the producer’s total clinker manufacturing capacity has risen to 9.74 MTPA, including output from an existing joint venture. Further capacity expansion is underway at the same site, with an additional one-MTPA cement grinding unit currently under construction, which is expected to enhance regional supply capabilities. The facility is strategically positioned to serve demand across North India, including key consumption markets and the National Capital Region, strengthening the producer’s presence in high-growth areas. The project has been financed through a combination of equity and long-term debt, with approximately Rs 800 crore allocated from recent public issue proceeds toward partial funding of the unit. Looking ahead, the producer has outlined plans to scale its total installed capacity to 41.85 MTPA by FY29, reflecting an aggressive expansion strategy focused on capacity growth and geographic diversification. 

A public interest petition has been filed before the High Court challenging a government order issued by the state administration that authorises urban planning bodies to grant approvals for housing layouts in hill regions and to allow changes in land use without obtaining mandatory clearance from the hill area conservation authority. The court has taken the petition on file and directed the state government to submit its response within four weeks. According to the petition, the hill area conservation authority was constituted in 1990 with the objective of safeguarding ecologically sensitive hill regions that are increasingly affected by urbanisation and industrial expansion. Under the existing regulatory framework, no development activity can be undertaken in 597 identified hill villages without prior approval from this authority. However, a government order issued in February empowered urban planning authorities to independently approve housing layouts in hill areas and permit land-use changes, effectively removing the requirement for clearance from the conservation authority. The petitioner argued that this order weakens long-standing environmental protection mechanisms and could result in serious ecological damage to fragile hill ecosystems. The plea seeks to quash the government order and also requests interim directions restraining planning authorities from granting layout approvals or permitting construction in hill areas based on the impugned order. The petition further contends that the government order is arbitrary and violates the constitutional guarantee of equality before law. It also asserts that the order infringes upon the right to a clean and healthy environment, which is an integral part of the right to life. The plea cites constitutional provisions mandating the state and citizens to protect and improve the natural environment.

Your dream home is likely to become more expensive, and possession timelines may also face delays. The ripple effects of the ongoing West Asia conflict are now beginning to impact the construction sector in Tamil Nadu. Early signs point to rising input costs, emerging supply constraints, and delays in the delivery of key construction materials across multiple project sites. According to industry sources, residential properties could see a cost escalation of around 6% to 8%. In practical terms, a home priced at Rs 1 crore may cost buyers an additional Rs 6 lakh to RS 8 lakh. Cement prices are expected to rise by Rs 50 to Rs 100 per bag from April 2026, while steel prices continue to remain volatile due to global uncertainties. At present, many developers are absorbing the increased costs to avoid passing the burden immediately to homebuyers. However, they caution that if disruptions persist over an extended period, the pressure will inevitably translate into higher property prices and extended project completion timelines. The impact of the conflict is particularly evident in construction inputs linked to crude oil, including pipes, plastics, insulation materials, and paints. While there has not yet been a significant slowdown in construction activity, shortages are beginning to surface in select segments, along with delays in material deliveries. If the current situation continues, these supply-side challenges could result in a steady rise in material prices, ultimately increasing overall project costs. Industry representatives have indicated plans to approach regulatory authorities regarding potential delays in project handovers, seeking relief measures and regulatory support. There is also a call for coordinated intervention to address supply bottlenecks, closely monitor price volatility in critical inputs such as cement and steel, and strengthen logistics through alternative sourcing channels. Such measures, industry experts believe, could help stabilize costs and minimize the impact on homebuyers if global disruptions persist.

The interest rate on a home loan plays a crucial role in determining both your monthly Equated Monthly Installment (EMI) and the total cost of the loan over its entire tenure. Even a small difference in the interest rate can lead to substantial savings or additional costs when spread across several years. Therefore, securing the lowest possible home loan interest rate is essential for long-term financial planning. When taking a home loan, borrowers can choose a repayment tenure based on their financial comfort, allowing them to repay the loan through manageable monthly installments. However, the interest rate offered on a home loan is not fixed for everyone and depends on several important factors. One of the most significant factors is the credit score of the borrower. A higher credit score reflects strong credit discipline and lower risk for lenders, which often results in access to lower interest rates and better loan terms. Borrowers with good credit scores typically benefit from reduced EMIs and lower overall interest outgo, while those with lower scores may be charged higher rates. Another important determinant is the loan-to-value (LTV) ratio, which represents the proportion of the property value financed through the loan. A lower LTV ratio generally indicates lower risk for the lender and can help borrowers secure more favorable interest rates. Similarly, income stability and repayment capacity play a vital role, as lenders assess whether the borrower can comfortably meet repayment obligations over the chosen tenure. The loan tenure itself also affects the interest rate and EMI structure. While longer tenures reduce monthly EMI amounts, they increase the total interest paid over time. Additionally, broader economic factors such as the policy interest rate set by monetary authorities influence lending rates, especially for loans linked to benchmark rates. The comparison table referenced provides an overview of home loan interest rates for loan amounts above Rs 75 lakh, covering both public sector and private sector lenders. This comparison helps borrowers understand how interest rates vary across different institutions and highlights the importance of evaluating multiple options before making a decision. By analyzing such comparisons, borrowers can identify lenders offering more competitive rates and choose a loan that best aligns with their financial goals. In summary, obtaining a home loan at a lower interest rate—supported by a strong credit profile and favorable loan terms—can significantly reduce EMIs and generate meaningful savings over the life of the loan.

A landlord in Chennai is facing escalating difficulties after a tenant allegedly failed to pay rent on time and refused to vacate a residential apartment despite repeated reminders and formal notices.The issue came to public attention through a detailed post shared on Reddit, where the landlord outlined nearly nine months of financial and property-related distress. According to the post, the tenant had initially presented himself as professionally qualified, financially stable, and dependable, which influenced the landlord’s decision to rent out the apartment. However, the situation reportedly deteriorated soon after the tenancy began. Rent payments were delayed for six out of the nine months of occupancy, despite multiple verbal and written reminders. After continued defaults, the landlord issued a formal notice requesting the tenant to vacate the property. The tenant initially agreed verbally to move out by mid-April, a commitment that was later documented through email communication. Subsequently, the tenant sent another email revising the move-out date to mid-May, extending the stay without clearing outstanding dues. As of now, two months’ rent remains unpaid, significantly increasing the landlord’s financial strain. In addition to rent defaults, the landlord alleges extensive damage to the apartment. A section of the wardrobe reportedly had to be dismantled and removed at a cost exceeding Rs 25,000. Floor tiles have been damaged, and bathroom fittings, including a washbasin, are broken. The walls, which were freshly whitewashed before the tenant moved in, are now visibly stained, while the bathrooms are described as being in extremely poor condition, requiring deep cleaning and repairs. The landlord further stated that the electricity bill has not been paid for several months and is now overdue, putting the power supply at risk of disconnection. Despite forwarding electricity notices and reminders to the tenant, no payment has been made toward the outstanding amount. According to the post, the landlord depends on the rental income to meet ongoing mortgage obligations. The security deposit, the landlord claims, will not be sufficient to cover the combined costs of unpaid rent, property repairs, maintenance work, deep cleaning, and pending utility bills. The post triggered strong reactions from other users on the platform. Many expressed sympathy for the landlord and shared similar experiences involving delayed rent, tenant disputes, and property damage. Several users advised seeking legal remedies to recover dues and repair costs, while others offered personal anecdotes about exiting the rental market altogether due to repeated negative experiences. Some responses suggested aggressive or unconventional approaches, including workplace confrontation or allowing utility services to be disconnected due to non-payment. Others described taking independent action to secure commercial properties or eventually selling rental assets to avoid further stress. Overall, the case highlights ongoing challenges faced by property owners in managing rental disputes, enforcing agreements, and protecting their financial interests when tenants fail to comply with contractual obligations.