Delhi Govt reduces Home Loan Interest and Circle Rates

delhi-govt-reduces-home-loan-interest-and-circle-rates

The Kejriwal government gave Delhiites another gift along with reducing the circle rate. The government has lowered the interest rate from 7.45% to 6.75% for availing residential loans. These interest rates are much lesser than the rates offered by private banks. 

There is great news for people who dream of purchasing a house in Delhi. The Kejriwal government has cut circle rates by 20%. In addition to this, the interest rate on the loans has been reduced by 1%. With this decision, the circle rates of different categories including residential, industrial, and commercial properties in Delhi were reduced by 20%. This reduction is valid for next six months only. 

Arvind Kejriwal, Chief Minister, Delhi, said- “We are gradually progressing and recovering from the economic and financial loss during the pandemic. The Delhi government is taking all essential steps to reduce the strain on the pockets of common people. Considering this, the Delhi government has decided to reduce the circle rate by 20% in the public interest.”

Reduction in loan interest rate

The Kejriwal government gave Delhiites another gift along with reducing the circle rate. The government has cut down the interest rate from 7.45% to 6.75% for availing residential loans. These interest rates are much lesser than the rates offered by private banks. With this decision, it will be easy to repay the installment every month. Earlier people had to pay an installment of Rs 803 per month per Rs 1 lakh. After reducing the mortgage rates they only have to Rs 760.

The decision helps in recovery of real estate sector- 

The Delhi government acknowledged that the pandemic had a major impact on the nationwide economy. Different business sector particularly real estate sector has experienced an unprecedented recession. During COVID-19 period, millions of construction workers had lost their jobs. Now it’s the time to strengthen the real estate industry and to generate job opportunities. Therefore, the Delhi government hopes that this decision by the Delhi Cabinet will help in recovering the real estate sector for long term. 

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