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Home / Cities / GDA may extend repayment periods for its flats, plots

GDA may extend repayment periods for its flats, plots

cities Updated: Dec 05, 2019 22:07 IST

Ghaziabad: The Ghaziabad Development Authority (GDA), in order to push for the speedy sale of flats and plots in its housing schemes, has proposed that the repayment period for residential housing be extended so that homebuyers can pay the cost more easily.

The authority officials said a committee of officials has been tasked to chalk out the modalities and it is likely to submit a report soon on extending the period of repayment for different categories of flats/plots and unsold properties in GDA’s housing schemes.

“The proposal is being prepared and will be placed before the board for a final approval. It will give an impetus to the sale of our properties and will also benefit homebuyers who will be able to get an extended period to pay the instalments,” Asheesh Shivpuri, authority’s chief architect & town planner, said.

Property department officials said they have proposed extending the repayment periods for two sets of properties — flats and plots in GDA’s own housing schemes and properties that are unsold and regularly put to auction.

The first set of properties includes flats for economically weaker sections (EWS), lower income groups (LIG), middle income group (MIG) and high-end flats. Presently, to purchase GDA’s flat/plot, the homebuyers have to initially pay 10% of the total flat cost as a registration charge and another 10% as reservation charge. The remaining 80%, along with a simple interest component, is paid in instalments spread over a specified period of time.

Officials said that the instalments for EWS category is spread over 20 years while those for non-EWS categories (LIG/MIG/high-end) are to paid quarterly, over three years.

“The quarterly instalments over three years put a lot of burden on homebuyers. Since three years is a short span of time, many default on payments. So we have proposed that the repayment period for non-EWS categories of flats/plots be extended to 10 years. Homebuyers will find it easy to make payments and their quarterly instalment amount will also come down,” AR Rahi, authority’s property in-charge, said.

In the case of unsold properties put up for auction, buyers have to pay 25% of the property cost upfront and the remaining 75% in instalments. For properties valued below ₹5 crore, the instalments are spread over two years, while for those above ₹5 crore, the instalments are spread over five years.

“We have proposed that repayment time of two years to be extended to five years and the five years to seven years. The committee will finalise the proposal soon,” Rahi said.

Officials said the GDA at present has an inventory of about 3,200 flats and 385 unsold properties (area below 2,000 square metres) and 42 unsold properties (area of 2,000 square metres and above).

Officials said they will also open up a ‘loan facilitation cell’ at GDA headquarters to help homebuyers tie up with private and nationalised banks.