Festival discounts from banks

[HynaRobino]

Most Builders in Tripunithura are now offering the reduced price under the disguise of incentives. Those shying away from accepting the correction are labeling it as ‘Festival-discount’. Those who are not yet open to this idea are giving away the discounts to the customers on the negotiating table. Many nationalized banks are charging 1 per cent less interest during the period of festivities and for selected projects only. Many are waiving off the 1 per cent processing fees as well. Some banks such as State Bank of India (SBI) have tied up with some developers to offer ‘Interest Subvention’. This means the buyer will be paying 2 to 2.5 per cent less interest on the loan taken during the first two or three years during which the construction is going on. SBI has already announced interest rate of 11 per cent and further declared 0.25 per cent reduction for selected projects for stipulated period of festivals.

Discounts are usually offered in projects which are not selling. But this is not an indicator of a negative response for the project. Developers usually bring down rates in their overpriced projects to an affordable level. However, most discounts have strings attached. Firstly, all incentives are not offered together. Secondly, many of them have a time limit. Another condition is that the offers are not for all the projects but for a few selected ones. It is usually for those projects which are either slow moving or at the very primary level when developer would need funds to carry on further. Many a time the direct reduction in price is applicable only for those who are going for a full down payment. Sometimes there are other limitations and discretionary conditions as well. Many developers have started to consider offering such discounts. Buying a property can be a long, complicated and frightening process, and it is important to be prepared. Knowledge is power when it comes to negotiating the difficult world of home prices, interest rates and mortgage loans. For a first time buyer, there are many factors to consider before you buy. The more information you can gather before you start shopping, the better off you will be.