Housing loan rate for govt staff now cheaper

The finance department on Tuesday announced 0.25 per cent cut in the interest rate on all housing loans availed by the state government employees. The state government has entered into an agreement with United Bank of India(UBI), which will disburse the loan to the interest employees.

As per the revised rate, while the rate of repayment of loan up to a period of five years is 10.75 per cent per anum, for a period from five years to 15 years it is 11 per cent. And for a period between 15 years and 20 years the rate will be 11.25 per cent.

It was till 2006 when the employees used to get housing loans from the government, but the practice was discontinued by then Left Front goverment. Instead banks like State Bank, State Co-operative Bank and United Bank were roped in to disburse home loans to the government employees. As per today's circular, UBI will offer the loan on a revised rate.

The rate cut, however, failed to enthuse even those employees'associations that owe allegiance to the ruling Trinamool. "The rate of reduction is very nominal and it will not make much difference to the employees. The real damage was made by Left Front government which stopped the practice of the government disbursing loans. So we are not dancing in joy," said Biswajit Mukherjee of United State Employees' Federation.

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