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PBAB, ICICI tie up to offer cheaper home loans

Add comment   |   September 26, 2008    12:02pm   |Contributed by Indian Realty News

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 to buyers, which will be applicable for 24 months after booking. The move will help attract buyers at a time when they are shying away from property purchases due to heavy home loans. 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 from 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. 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.

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