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The Ghaziabad Development Authority (GDA) has reduced the interest rate on its residential properties from 10.7% to 8.7%, bringing it in line with the State Bank of India's home loan rates. The move follows a state government directive and comes after the authority kept rates unchanged since 2018. GDA has also reduced the penalty for delayed EMI payments from 3% to 2%. The revised rates are expected to improve affordability and help clear 1,748 unsold housing units across multiple income categories.
The Ghaziabad Development Authority has revised its interest rate structure for residential property buyers, cutting the applicable rate from 10.7% to 8.7%. The revision was carried out to align GDA's rates with those of the State Bank of India, following directions issued by the state government. Until this change, the authority had maintained the same interest rate since 2018, despite multiple shifts in the broader lending environment. Advertisement
Along with the interest rate reduction, GDA has also eased its payment terms by lowering the penalty for delayed EMI payments. The penalty rate has been reduced from 3% to 2%, bringing it closer to prevailing practices followed by banks and housing finance institutions. This step is aimed at reducing the financial burden on buyers who face occasional delays in repayment.
The authority currently has 1,748 unsold residential units across various housing categories. These include Economically Weaker Section (EWS), Low Income Group (LIG), mini LIG, and 1, 2 and 3 BHK flats. Property prices range from around INR 5.7 lakh for EWS units to nearly INR 69.4 lakh for higher-category homes. High interest costs were seen as a key factor slowing sales in several of these segments.
The rate revision also comes at a time when major banks, including SBI, have reduced home loan interest rates after the Reserve Bank of India lowered the repo rate recently. Banks have passed on these cuts to borrowers, leading to lower EMIs and improved loan affordability. GDA's decision to link its rates with SBI ensures that any future rate changes by the bank will be automatically reflected in its property payment structure.
By adopting a dynamic rate mechanism instead of a fixed long-term rate, the authority aims to remain aligned with market conditions. Officials expect the move to improve buyer confidence, speed up inventory clearance, and make GDA housing projects more competitive when compared with private developers offering bank-linked payment options.
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