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NEW DELHI: You didn’t need to visit a branch to open a bank account in 2020. Come 2021, the digital drive will continue even as tough lessons from the previous year will force the financial world to innovate. Here s how things may shape in the coming year:
Home loans to stay soft: Housing loans hit an all-time low in 2020. While many lenders feel rates have bottomed out, we’re in uncharted territory as far as policy rates go. Real interest rates (adjusting for inflation) are negative. Globally, $17-trillion debt is yielding negative returns and more countries, possibly the UK, may join the ranks. With banks riding on surplus liquidity and no significant pick-up in credit, home loan rates could remain soft.