Noida Reduces Interest Rate on Property Dues

Following a state government’s directive, the Noida authority said it will start levying a lower interest rate of 8.5% on dues on properties that include residential plots, industrial plots, institutional plots and others except for group housing land. Earlier the interest rate was 9.5 % and even higher for some properties which were allotted by the Noida authority. “We will start charging interest rates of 8.50 % beginning July 1 as per the current marginal cost of funds based lending rate (MCLR) of State Bank of India (SBI). This rate will applicable till December end, 2020 as the MCLR will remain same for this year and is up for revision next year,” said Ritu Maheshwari chief executive officer, Noida authority. The MCLR fixed by SBI?is 7.3 % and the authority has imposed 1 % additional charge as administrative expenses on it and the interest rate has been fixed at the round figure of 8.5%. The step is taken to encourage the allottees to pay dues so that Noida authority can recover their revenue.