No hike in interest on home loans: FM

New Delhi, Feb 8 (UNI)Finance Minister P Chidambaram today gave a clear indication that there would not be a hike in interest on home loans.

''I told the recent meeting of CMDs of Public Sector Banks not to increase interest on home loans and they agreed not to do so,'' Mr Chidambaram told mediapersons here.

To another query, Mr Chidambaram, however quipped that; ''I am not micro-managing home loans.'' The Finance Minister said there were only a handful cases of home loans being given for fradulent titles relating to ownership, but all other were cases of loans being given to genuine owners.

Mr Chidambaram said the fears of hike in home loans emanated from tightening of monetary policy and increase in risk weightage for certain sectors, like real estate.

Asked whether the private sector banks would also not increase interest on the housing sector, Mr Chidambaram said ''private sector is private sector.'' UNI GS VD BD1647