GDA has reduced the interest rate on its properties from 10.7% to 8.7%. This adjustment aligns it with the State Bank of India’s rate, as mandated by the state government. The rates will remain flexible and will change in accordance with SBI.
The Authority’s rate had been stable at 10.7% for the past seven years (since 2018). “The topic of interest rates imposed by development authorities throughout the state was subject to discussion. It was contended that the interest rates ought to be comparable to those of SBI. Why should we enforce high interest rates when banks provide lower rates?” stated an official from GDA.
The Authority has also decreased the penalty for late EMI payments from 3% to 2%, making it more competitive with market rates. The official indicated that the new rate will enhance consumer confidence and facilitate the sale of GDA properties. Currently, GDA has 1,748 unsold dwelling units.
The cost per unit varies from Rs 5.7 lakh for EWS units to Rs 69.4 lakh across various housing schemes, which include 1, 2, 3 BHK, mini LIG, LIG, and EWS flats. The reduction in interest rates is anticipated to accelerate inventory clearance.
