By Accommodation times News Services
To attract home buyers and to make purchasing property convenient for buyers the members of Confederation of Real Estate Developers’ Associations of India (Credai) has launched a new scheme, according to which the buyers will be charged with a very nominal interest rate i.e. 7.5% interest till the date of possession or up to 24 months whichever is earlier and the rest of the balancing amount will be adjusted in later period.
By introducing this scheme Credai members are aiming to attract the buyers who are willing to buy home, but are worried over interest rates. As per their norms the lender will not take a cut on the interest. Instead, the developer will shell out the difference between 7.5% and what the lender is charging for that specific period.
The scheme offers the buyers to customer pays 10% of the cost of the house as down payment and the bank will start disbursing the loan according to the progress of the project. Banks will process the loan applications according to their rules and charge the same interest. However, those who sign an agreement between January 17 and March 31 with any of the Credai Members will get back from the developer every month the interest in excess of 7.5%.
Gera said for a loan of Rs 40 lakh, a customer will save approximately Rs 10,000 per month during the period of construction. After two years, when the project will be complete, his income would have gone up and the regular EMI would not pinch him, he added. So, are the days of liberal pricing and sweeteners of the post sub-prime crisis back in the realty sector? Credai Pune Metro president Hemant Naiknavare did not quite agree. “The situation in the aftermath of sub-prime crisis was different. The fear of an imminent job loss kept buyers away. This time, it is the economic slowdown that has made the buyer cautious and hesitant,” Naiknavare said on Wednesday.