To offer home loans at 10 per cent.
In a bid to attract flat buyers during the heavy home-loan interest rate regime, real estate developers in Pune have decided to bear certain burden of the interest rate for first 24 months.
The Promoters and Builders Association of Pune (PBAP) has tied up with ICICI Bank to offer home loans at 10 per cent rate of interest, which will be applicable for 24 months after booking.
As per this agreement, the ICICI will charge 12.5 per cent rate of interest on home loans, out of which, the flat buyer will pay for 10 per cent of interest rate while the remaining would be taken care by the respective real estate developer. PBAP president Lalitkumar Jain announced this scheme expressing concerns over the recent slowdown in the real estate sector.
“The boom in real estate sector in Pune is over and the market has stabilised. The demand for 1BRHK flats is increasing on a steadfast note in Pune. A major problem is the higher rate of interest on home loans and hence, we are trying to address the same,” Jain said.
The scheme will be available between October 3 to 5 when PBAP will organise its annual real estate exhibition in Pune.
“We expect the home loan interest rate to go down within next 8 to 12 months. While this happens, we want customers to book flats with us through lower interest rate. As of now, people are paying around Rs 1,080 per lakh per annum interest on home loans. If they book flats with PBAP members, this amount would be around Rs 966,” Jain stated.
Commenting on this tie-up, ICICI mortgage finance head Balaji Raghavan said, “We are doing an excellent business in Pune region. The offer from PBAP was good and we had no objection in their willing to share a certain burden of interest rate.”
PBAP is planning to incorporate other major players in home loan segment such as HDFC in this scheme.
“We will announce more tie-ups soon,” Jain added. The PBAP members are planning to sell more than 6,000 flats through this scheme.
