The Hindu Business Line : Realtors come up with schemes to woo buyers

Bangalore, Sept. 23 With home loans becoming dearer and prices of apartments in the primary real estate market showing no signs of relenting, it’s the genuine home buyer who is shying away from the market.

Developers are trying every trick in the trade to woo them. Thinking beyond cash discounts and freebies, some developers in Bangalore have come up with schemes that aim to lessen the EMI burden of customers.

Value Designbuild Pvt Ltd, a Bangalore-based real estate company, has tied up with HDFC for housing loan for a scheme wherein one per cent interest for the entire loan tenure is being waived off.

This scheme is available for VDB Celadon, the developer’s upcoming project in North Bangalore and only till Dussera. The project would see a development of 190 apartments in the Rs 30-50 lakh price segment at Yelahanka.

“To avail this offer, the client should be eligible for loan and be ready to start his EMIs immediately, as this offer is applicable only on upfront payment,” says Mr Koshy Varghese, Managing Director, Value Designbuild.

This means, the bank will release the entire sanctioned amount to developers in one shot and client will start paying his EMI.

Advance interest

“The bank will take the 1 per cent interest (for entire loan tenure) from us in advance and will charge the client 1 per cent lesser interest,” he explains.

For example, on a Rs 40-lakh loan spread over 20 years, the one per cent interest that the company would absorb from the customer would work out to about Rs 250 per sq foot, “which is about Rs 3.5 lakh,” says Mr Varghese.

“When the bank disburses the amount to us, we would get Rs 36.5 lakh only, as the one per cent interest for the whole tenure would be deducted upfront.” It’s a tri-partite agreement between the bank, customer and the company, he adds.

The demand has come down, according to him, because of the negative market sentiments. “But regular enquiries and sales happen. The market is not dead,” says Mr Varghese.

For most genuine buyers, “the main problem is high interest rates,” he says, adding that this offer would encourage customers to buy at rates that are better affordable.

Advanced disbursement

Ajmera Realty & Infra India Ltd has introduced a customised Advanced Disbursement Fund scheme for its clients, where in the developer bears the interest applicable on the home loan taken by the client for the purchase of the apartment before the possession of the apartment. “By doing this, we are fulfilling our commitment to all our clients for providing affordable housing,” says Mr Dhaval Ajmera, Director, Ajmera Realty & Infra India.

As the marketing head of Sterling Developers, which had introduced such incentives four years ago, even when the market sentiments were good, Mr Shankar Sastri says, “If the purchaser is the end-user, these schemes would work, given that the pricing is affordable.”

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