Minister asks Delhi Cooperative Housing Finance Corporation to reduce interest rates

Cooperative Minister Rajendra Pal Gautam on Monday directed Delhi Cooperative Housing Finance Corporation Limited (DCHFC) to reduce interest rates to benefit Delhiites.

"On the resolve of Chief Minister Arvind Kejriwal, I have directed the DCHFC to reduce the interest rates as compared to private banks so that the common people can avail loans at cheaper rates to buy a house," Gautam said in a statement.

"The Chief Minister has taken a historic decision to reduce the circle rate of residential, commercial and industrial properties to 20 per cent. With the reduction in circle rates, the common people will be able to realise the dream of buying a house," he said.

Rajesh Goyal, chairman of DCHFC said, "With the decision of the government, the rate of interest for Delhiites for taking housing loan has been reduced from 7.45 per cent to 6.75 per cent. These rates are much lower than private banks. This will provide relief to Delhiites in instalments every month."

He also said that while the relief in instalments will reduce the pressure on the borrowers, they will be able to bring other kinds of happiness to their families.

Goyal also said that the decision to reduce circle rates will enable more and more people to buy real estate and the stability in real estate will also be removed. This will reduce housing prices and middle-class families who have been living in rented houses for years will be able to buy homes for themselves. After lowering the interest rate, the instalment per month will be Rs 760 per Rs one lakh, whereas earlier it was Rs 803.

However, DCHFC is planning to announce a more attractive package of a housing loan scheme for the middle class and weaker sections soon, as per the statement.

( With inputs from ANI )