“GDP growth slowing will not impact, and interest rates have not reached a stage where people should stop buying homes,” HDFC Managing Director Renu Sud Karnad told Deccan Herald.

She said a 375 basis point hike in two years is not something one should make hue and cry about, as there was a time when the interest rates were as high and people purchased homes even the. Her comments came as a major boost to housing industry after some apprehended two consecutive quarters of fall in Indian economy might affect demand for home loans.

A recent data from the National Housing Bank and the Reserve Bank of India too suggested that in the first six months (April-Sep) of current financial year showed that home loans by 54 housing finance companies was 10 % higher and was close to Rs 50,000 crore against Rs 45,000 crore a year ago.

The demand for housing finance has improved due to availability of affordable houses on the periphery of metros and in Tier-II and Tier-III cities, experts opine.

HDFC’s recent scheme of a fixed-cum-floating rate scheme aimed at offering HDFC home loan at a fixed rate for the initial three or five years and at a floating rate thereafter, was a big hit, according industry players.