Real estate may be a slump and banks may be licking their past wounds, but the shift to affordable housing – a win-win combination for cash-strapped realtors and first-home seekers, is bearing fruit.

Public sector bank executives say the demand for sub-Rs.20 lakh mortgages is reviving, with strong appetite in Tier II cities, where the needs are strong but budgets low.

Aided by government initiatives under its stimulus plan, home loan rates for the sub Rs 20 lakh level is below 10% and that is aiding the trend.

Hindustan Times