In its January meeting, the board had planned to reduce the interest rates on EMIs. The board officials said they will also amend the range of property value in accordance with the EMIs. “Interest rates on EMIs are being brought on par with banks so that allottees deposit property cost directly to the housing board and pay their interest,” said UPHDB secretary Mishri Lal Paswan.

He said proposal will be tabled in the next meeting of UPHDB members. The meeting was scheduled to be held on Saturday but it has been postponed.

Paswan added that at present te board charges 11 to 13 per cent interest rate depending on the value of the property, while the nationalised banks charge around 9.5 per cent on properties valuing up to Rs 5 lakh.

For property valued up to Rs 75,000, the interest rate charged by the board is 11 and for those valued between Rs 75,001 and Rs 3 lakh it is 12 per cent. The interest rate charged by the board for property valued above Rs 3 lakh is 13 per cent.

Now, the UPHDB wants to reduce interest rates by one per cent in all the three categories. As per the proposal, interest rate on EMIs of properties worth up to Rs 5 lakh will be reduced to 10 per cent. For properties costing up to Rs 15 lakh, interest rate will be 11 per cent. For those above Rs 15 lakh, the interest rate would be 12 per cent.

“The board will also amend the property valuation bylaws, which were amended last in 2002. As per the existing valuation bylaws, EMI is calculated on properties costing from Rs 75,000 to 3 lakh. Now this property value range will be increased to Rs 5 to15 lakh,” a board official said. This will be done because the cost of the property has increased manifold since 2002, he added.