UP cuts home loan rates to 11 per cent
Vishal Sharma
New Delhi/ Agra. In view of the tough competition being faced by the Uttar Pradesh development authorities from private financing institutions on housing loans, the UP government has decided to reduce the interest rates on housing loan from almost 23 per cent to 11 per cent.
This rate would be 1.5 times higher for commercial properties.
After a meeting of the finance controllers of the housing boards and development authorities of the state held recently, it was decided that since the high interest rates were not in the best interest of the development authorities, who were not getting enough buyers for their properties, the rates should be reduced to at least half of the present interest rates.
According to the sources at the Agra Development Authority, development authorities all over the state were charging an interest of up to 23 per cent from the people who had leased their properties but private financing institutions and banks were shelling out loans at 9 per cent interest rate.
Sources claimed the proposal, formed by the UP housing secretary, had the provision of fixing the interest rates for the lower income group at 11 per cent while the rates for middle income group and higher income group were fixed at 12 per cent. Commercial property was slated at 15 per cent.
New Delhi/ Agra. In view of the tough competition being faced by the Uttar Pradesh development authorities from private financing institutions on housing loans, the UP government has decided to reduce the interest rates on housing loan from almost 23 per cent to 11 per cent.
This rate would be 1.5 times higher for commercial properties.
After a meeting of the finance controllers of the housing boards and development authorities of the state held recently, it was decided that since the high interest rates were not in the best interest of the development authorities, who were not getting enough buyers for their properties, the rates should be reduced to at least half of the present interest rates.
According to the sources at the Agra Development Authority, development authorities all over the state were charging an interest of up to 23 per cent from the people who had leased their properties but private financing institutions and banks were shelling out loans at 9 per cent interest rate.
Sources claimed the proposal, formed by the UP housing secretary, had the provision of fixing the interest rates for the lower income group at 11 per cent while the rates for middle income group and higher income group were fixed at 12 per cent. Commercial property was slated at 15 per cent.
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