Like every other middle class citizen family, I also dream of owning a house someday. But looking at the rising home loan interest rates, I feel it will take me a lifetime to achieve this dream.  

In 9 months, the interest rate for my home loan has risen from 6.25% to 8.95%! I had hoped that I would be able to repay the loan in 20 years. But at this rate, it will take me 27 years to clear my bank dues. In our country, those with an annual income of Rs 8 to 10 lakhs spend about 40% of their total earnings towards paying home loan installments. What is left is spent on the bare necessities; children’s education, household expenses, healthcare etc. In the end, what are we left with?

In the upcoming Budget, I request the Prime Minister, Finance Minister and the RBI to consider the middle income group too. Why can’t the government, which actively promises free ration, free housing, free water, free electricity, take into account the struggles of India’s middle class? Why can’t the interest rates for home loans be fixed?

Home loan interest rates should not be affected by the continuous increase in Repo Rate by RBI. Citizens, who are already burdened by the rising inflation, should be given relief; because EMIs are not just a matter of one or two months, they run for 10-20 years!

Home buyers should also be given relief in the form of tax exemptions. The principal portion of the EMI paid for a  year is allowed a deduction under Section 80C. The deduction limit currently stands at Rs 1.5 Lakh. This should be increased to at least Rs 5 lakh a year, especially because other investments  like LIC, PPF, etc., also get clubbed under this section. The limit for tax exemption on the interest should also be increased.

I am not an expert on economics but I have to think about the budget for my home and family. Home loans are meant to help us make our dreams come true. But the rising interest rates are strangling the aspirations of the middle class. 

If you agree then do show your support. Sign this petition and help me take our plea to the Honorable Prime Minister, Finance Minister and the RBI.