Karnataka to seek lower interest rate for housing scheme loans

Housing Minister V Somanna said that the proposed benefit will be for loans worth Rs 2.25 lakh for houses being built under PMAY

The state government will petition the Centre to reduce the interest rate to 6% from the existing 6.5 per cent for loans availed by beneficiaries under various government housing schemes.

Housing Minister V Somanna said that the proposed benefit will be for loans worth Rs 2.25 lakh for houses being built under Pradhan Mantri Aawas Yojana (PMAY) by Karnataka Housing Board and Rajiv Gandhi Housing Corporation Ltd. A total of 3.24 lakh housing units will be built under the scheme, he said.

He said that the proposal to hand over rights of 3.13 lakh properties developed by Karnataka Slum Development Board was hit by a snag, after beneficiaries complained of high fees to claim RTCs.

“We have requested the CM to decrease the fee. The issue will likely be taken up in the next Cabinet meeting,” he said.