Getting Home Loans in India, particularly in Delhi, would not be easy in coming days. According to the ICICI Bank chief executive and managing director K V Kamath, ICICI bank, that happens to be the second largest bank in India, is going to make policies for home loans stricter in coming days. There would be tough screening process before granting home loans.

He said that

property prices in certain parts of India were much higher. Property prices in pockets areas could be hot. Delhi is hot, Mumbai is not as hot.

Tax breaks and low interest rates have resulted in higher residential property prices in Delhi and NCR region. It has been raised as much as three times during the last three years. Further there are no signs of costs coming down.

However, the ICICI Bank has been termed as one of the most aggressive players in the home loan market. Loans to real estate sector account for nearly 30% of the bank’s portfolio. With the earlier eagerness to court loan seekers giving way to wariness, a cautious stance may lead to tightening.

Banks are also known to increase rates and raise due diligence on potential customers when a certain category of loans account for a large share of their debt portfolio.

As par the new possible tougher screening process, the people who already have a sizable loan burden such as personal loans, car loans or other EMIs for an earlier house, may be given a smaller loan only.

This is not the end of the story, Apart from this, those who have defaulted on paying installments on any previous loan as well as have been irregular in clearing credit card dues would possibly see some tough time and would be charged some higher interest rates.

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