NAREDCO calls for lowering interest rate on home loans

Mumbai: The National Real Estate Development Council (NAREDCO) on Wednesday called for lower interest rates or no cap limit on interest subsidy of home loans in the upcoming Union Budget for 2020-21.

Earlier, there was a Rs 2 lakh limit which was increased by Rs 1.5 lakh, making it Rs 3.5 lakh during the previous Budget. “We are hopeful that 2020 will see no cap limit,” said Rajan Bandelkar, President of NAREDCO West and Director of the Raunak Group.

“The 2020 Budget may also see new developments in real estate investment trusts and rental housing to meet the needs of Pradhan Mantri Awas Yojana (PMAY),” he said in a statement.

“We are hopeful that this year’s Budget will focus on strengthening the potential to lead India into the next phase of development and growth,” said Bandelkar.

The real estate sector has experienced turbulence in recent years with huge inventory pile-up across the country due to economic slowdown, high-interest rates, and weak consumer sentiment.

Bandelkar hoped the Budget will be all-inclusive and address the demand and supply side of the sector. “We are certain that it will have a number of industry-friendly measures, thereby setting the tone for the future growth of the economy.”

NAREDCO was established as an autonomous self-regulatory body in 1998 under the aegis of the Ministry of Housing and Urban Affairs. It was formed with the mandate to induce transparency and ethics in the real estate business and transform the unorganised sector into a mature and globally-competitive business sector.