Chennai's Vijay Shanthi Builders to bear interest burden on housing loans

Venkatachari Jagannathan
05 February 2008

Chennai: Chennai's Rs1.08-billion revenue property development company Vijay Shanthi Builders Limited says it is coming out with a scheme shortly to take over the interest burden on home loans from its customers till such time that they get the possession of the apartment.

The scheme is termed 'Pre EMI' and will be available to buyers of apartments in its five mid-income projects - Park Avenue, Lotus Pond, Infiniti, West Park and Statue Circle - coming up in Chennai.

"There is no catch or hidden cost in the scheme. Our clients can avail of this scheme irrespective of the lending institution," says Suresh Kumar, managing director.

While 70 per cent of all apartment cost is met through loans by the buyers, Kumar said the impact of the Pre EMI scheme on Vijay Shanthi will not be much.

The other way of attracting prospects is to reduce the apartment cost, which would not amount to much.

No family split
Denying a family split with brother Naresh Jain having quit as the company's executive director and starting a property development company of his own, Kumar say, "My brother wanted to realise some of his own ideas. "Neither Vijay Shanthi or I have any stakes in Atmosphere Lifestyle Homes Pvt Ltd, promoted by Jain."

When contacted, Jain confirmed that there had no been any split, "My wife and I continue to hold slightly less than an 8-per cent stake in Vijay Shanthi. I am also on the company's board."