The Reserve Bank of India on Tuesday lowered the repo rate plan at which it lends to banks by 25 basis points to 6.25%. Syndicate Bank and Bank of India have taken a sign from the Reserve bank of India and reduced MCLR (Marginal Cost of Fund Based Lending Rates) in the scope of 5 to 10 basis points. Higher banks like ICICI Bank and State Bank Of India (SBI) bank already reduced their lending rates a few days before this policy was declared.
The policy of calculating base rate according to the marginal cost of funds comes into occurred from April 1, 2016. All banks are following after the (MCLR) Marginal Cost of Fund Based Lending Rates, another uniform system which guarantees reasonable interest rates to borrowers and also to banks.
For a term of one year, the new rate for Bank of India stands at 9.35%, against 9.40% prior; while new rate for Syndicate Bank stands at 9.45% against 9.55%. The new rates are effective from October 7 2016, Friday. Country’s biggest bank State Bank of India and another biggest bank ICICI bank reduced rates by 5 bps to 9.05% for one year with effective from October 1, 2016.
However, this is great news for everyone who is looking for a loan. This is Diwali come early for them, with the repo rate cut translating into lower interest rates on their loans.
Noida Authority has issued a strict warning to developers that it would take legal action against those who give possession of flats without acquiring occupancy certificates (OC). In a notice issued on Wednesday, the Authority’s CEO PK Agarwal has also asked homebuyers to check detail of realty projects, which have been permitted completion certificates in recent months, before taking possession of a residential unit from any developer.
The Authority issues a completion certificate to a particular building after checking the endorsed design plan. Also it issues an occupancy certificate after examining that project is fit for occupancy. A thorough inspection of the building, which covers basic wellbeing, fire security, lifts, electrical establishments etc, is done by the Authority.
“If possession is taken over by them (homebuyers) from developers who don’t have the required completion certificates essential for occupancy, it would be at their own risk and Authority would not be considered responsible for it,” the notice says.
“While issuing possession or completion certificate, the Authority analyses security parts of the structures or building. Officers from various departments of the Authority conduct site inspection. These departments issue them certificates if the buildings agree to security models. So, want to illuminate the purchasers that before taking possession of their flat, they must check with the Authority if the builder has been issued the necessary certificates.” Getting certifications is the developer’s duty. If a group housing project does not have the essential certifications required for a completion declaration and occupants are staying in the units, it could prove to be safety exposure to property and life, Agarwal CEO said.
On those homebuyers who have already moved into their “dream homes” without the required certificates, Agarwal said that “a board is already in place to conduct immediate checks of projects”.
Amit Modi, VP, CREDAI (western UP), said “these certificates are compulsory for getting homes registered. Without these certificates, one can’t legally own a house.”