Delhi Government Announces Dual Benefits for Homebuyers
Boost to Homeownership in Delhi
Delhiites have been granted a significant advantage in their pursuit of homeownership. The Kejriwal government has cut circle rates by 20% across various property categories, including residential, industrial, and commercial properties. This reduction is effective for the next six months.
Reduced Interest Rates for Residential Loans
In conjunction with the circle rate reduction, the government has lowered the interest rate on residential loans from 7.45% to 6.75%. This new rate is notably more favorable than those offered by private banks, making monthly installments more manageable. Previously, for every Rs 1 lakh borrowed, the monthly installment was Rs 803; now, it's reduced to Rs 760.
Chief Minister Arvind Kejriwal's Stance
Arvind Kejriwal, Chief Minister of Delhi, stated, “We are gradually recovering from the economic and financial losses incurred during the pandemic. To alleviate the financial strain on the common people, the Delhi government has decided to reduce the circle rate by 20% in the public interest.”
Impact on Real Estate Sector Recovery
The Delhi government acknowledges the pandemic's devastating impact on the national economy, particularly the real estate sector. This decision aims to revitalize the real estate industry and generate job opportunities, especially for the millions of construction workers who lost their jobs during the COVID-19 period.