Banks use various methods to pinch the borrowers without their knowledge; they issue fixed rate and flexible rate loans. But fixed rate loans also be made 'flexible' by an increase in the repayment period.
Already, home loans are provided on the basis of guideline value of the local administration. If it is so, what Mr.Rajeev Sabharwal is trying to say. But surely, restricting money flow to the housing sector will help bring in a matured real estate market in the country, which is just going beyond the definition of a fair market. For people like me, who expect a valcano to burst out of the real estate -> mafia -> politician (and of course the hand-in-glove bureaucracy)in the form of a huge scam this is really a solace.
