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Realty players seek further cut in home loan rates
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NEWSX on 17 December, 2008 10:42:01
 
The country's real estate players on Wednesday asked the government to cut
interest rates on home loans further and restructure debt of developers in order
to boost demand in the sector.
"We asked the government to give some concessions to our customers by
increasing the upper limit of home loans to Rs 30 lakh from the current Rs 20
lakh," National Real Estate development Council (NAREDCO) President Rohtas Goel
told reporters after meeting Planning Commission Deputy Chairman Montek Singh
Ahluwalia.
The realty players also demanded restructuring of debts as the sector was going
through credit crunch in developing projects across the country, he added.
After the meeting, Ahluwalia said, "We have heard to one representative group,
that is CREDAI. There is another major group, which wanted to make a
presentation. We had a very good meeting."
The realty players explained their issues and different government departments
would consider what could be done, he added.
Goel said NAREDCO had asked for one year moratorium on repayment as part of
restructuring of debts besides demanding revision of upper limit in the recent
home loan package announced by PSU banks to Rs 30 lakh from Rs 20 lakh.
He also said interest should be brought down to 6.5 percent for loans up to Rs
5 lakh, 7.5 percent for loans in the bracket of Rs 5 lakh to Rs 30 lakh and 9.5
percent for borrowings above Rs 30 lakh.