Ghaziabad Development Authority Cuts Property Interest Rates After Seven Years
The Ghaziabad Development Authority has made a significant move for homebuyers. It has slashed the interest rate on its properties. The rate drops from 10.7 percent to 8.7 percent. This change brings GDA's rates in line with the State Bank of India.
Following State Government Directives
This reduction follows directives from the state government. Authorities across Uttar Pradesh discussed the issue of interest rates. They argued development authorities should not charge more than banks. An official from GDA explained the reasoning clearly.
"Why should we impose heavy interest rates when banks offer cheaper rates?" the official said. The decision aims to make housing more affordable for people.
Dynamic Rates Linked to SBI
The new interest rate will not remain static. GDA has decided to keep its rates dynamic. They will change in line with SBI's rates. If SBI increases its interest rates, GDA will follow. Similarly, if SBI makes another cut, GDA will also reduce its rates.
This linkage ensures homebuyers get competitive financing. It removes the disadvantage of higher rates from development authorities.
Penalty on Missed EMIs Also Reduced
GDA has introduced another consumer-friendly measure. It has reduced the penalty for missing an EMI payment. The penalty drops from 3 percent to just 2 percent. This brings GDA closer to competitive market standards.
The official believes these changes will boost consumer sentiment. They should help in the disposal of GDA properties more quickly.
Clearing Unsold Inventory
Currently, GDA has a substantial number of unsold units. Exactly 1,748 dwelling units remain available. These units span various housing categories and price points.
Per-unit costs show a wide range. Economically Weaker Section units start at Rs 5.7 lakh. More premium options go up to Rs 69.4 lakh. The housing schemes offer diverse choices.
- 1 BHK apartments
- 2 BHK apartments
- 3 BHK apartments
- Mini LIG flats
- LIG flats
- EWS flats
The reduction in interest rates is expected to boost inventory clearance. After seven years at 10.7 percent since 2018, this change marks a new phase. It aims to make GDA properties more attractive to potential buyers in Ghaziabad.
