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Real estate developers, The Promoters and Builders Association of Pune (PBAP) have taken a move to reach out to the flat buyers by launching a new scheme whereby a certain burden of interest rates for the first 24 months will be borne by the developers.
The providers have tied up with the largest private lender, ICICI Bank to extend home loans at interest rates of 10%, valid for 24 months after booking of flat. The contract states that ICICI will charge 12.5% interest rates on home loans, which would be borne by the flat buyer and PBAP in the ratio of 4:1 respectively.
Lalitkumar Jain, President PBAP launches this scheme to participate in overcoming the recent distress of 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 PBAP members are planning to sell more than 6,000 flats through this scheme and will make the scheme available from October 3rd and 5th in its annual real estate exhibition in Pune.
Jain stated, "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."
Speaking about the 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."
In order to make this scheme a hit, PBAP is planning to join hands with other major players in home loan segment such as HDFC Bank.
"We will announce more tie-ups soon," Jain added.