It is concerning that MHADA is charging 18% interest: Maharashtra’s deputy chief minister

NEW DELHI: The deputy chief minister of Maharashtra, Devendra Fadnavis, described the current interest rate that MHADA is collecting from developers as extremely high and said that it must be lowered in order to be comparable to that of the BMC.

In order to lower the current rate of 18% compound interest to the rate charged by the BMC, Fadnavis said that the state government would examine the situation shortly and request that MHADA submit a proposal.

“MHADA’s 18% compound interest rate is extremely excessive, and it is completely inappropriate to charge such a high-interest rate. The interest rate ought to be comparable to what banks offer. “I will undoubtedly step in and, on behalf of NAREDCO Maharashtra, the government will request that MHADA submit a proposal.

This will allow it to be brought up to speed with the BMC and ensure that all of the organizations have the same regulations,” stated Fadnavis.

Regarding the industry’s request for a premium reduction, Fadnavis promised that the government would always give it serious thought, though it would be difficult to predict when that action would be taken. He went on to say that the government has been debating a number of demands made by the real estate sector.

“The entire real estate market has changed since Maharashtra launched MahaRERA, and small buyers’ confidence in the market has grown significantly.

By adhering to MahaRERA regulations, developers have established a legitimate market for purchasers and leveled the playing field. The deputy CM stated, “Many players with ethical values are entering the sector from both the corporate and non-corporate worlds.

He was giving a speech at the Mumbai-based NAREDCO Maharashtra expo.