Venkaiah Naidu promises cheaper home loans

The new urban development minister Venkaiah Naidu on Wednesday announced plans to reduce interest rates on home loans, so as to give a push to the real estate sector.

A reduction in home loan rates is key to achieving the goal of housing for all, Naidu said on the first day in office. He said he would actively pursue the matter with the finance ministry to prod banks to cut lending rates for home loan seekers.

"Housing is our top priority area and I will be taking up this matter with my colleague who is the finance minister," he said.

"We will intervene and bring down the interest rates for housing a little. That will be my priority."

Naidu said housing has always been a priority for the National Democratic Alliance government as was evident during the Atal Bihari Vajpayee government, when housing loan rates had been at their lowest.

"Then the interest rate was reduced from 11 per cent to 7 per cent," he said.

"Today again the interest rate for housing has gone up to 10-11 per cent."

"If you want to achieve housing for all by 2020, you need to have interest reduction, you need to have interest invention," he said.