Lucknow development body lowers interest rates to attract home buyers

LUCKNOW: In a major step to bring relief to its existing customers and future prospective property buyers, the Lucknow Development Authority on Tuesday lowered the interest rates up to 2%.

Earlier, the LDA used to charge 9, 10, 11 and 13% interest rate respectively for economic weaker section (EWS), lower income group (LIG), middle income group/high income group (MIG/HIG) residential properties, and commercial properties, but from now on existing customers and future property buyers would be charged 7, 8, 9 and 11% respectively for the properties.

Further, the EMI period has also been increased from two to five years.

Official sources claimed that, “To counter the average interest rate of banks which is around 8% in the market and, to sell the vacant flats which are around 2,000, the LDA led by chairperson Roshan Jacob in its 175th board meeting decided to lower the interest rate.” The benefit would also extend to nearly 1000 home buyers of LDA whose EMI is active.

According to the LDA, the penalty interest rate has also been reduced to two from three percent.

“Apart from giving relief in interest rates, the LDA has also brought flexibility in rebates. Earlier only a 5 percent rebate was given if the buyer paid the full amount of the property within 60 days, however if delayed, the rebate was revoked. But now, if the buyer pays the amount within 45 days the LDA would give a six percent rebate. Similarly, four percent rebate would be offered if the full payment is made within 75 days and three percent rebate upto 90 days,” said an official source.

Further LDA would also offer two percent relaxation to home buyers under first-cum-first service scheme for flats.

The proposal to extend the freeze price of vacant flats by one year in various schemes of LDA was also approved in the board meeting.