If you are planning to buy a flat or house, then it's a good news for you as a homebuyer! In a major development, the Delhi Cooperative Housing Finance Corporation Limited has slashed interest rates on housing loans from 7.45 per cent to 6.75 per cent. The move comes days after the Delhi government reduced circle rates on properties by 20 per cent.

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Cooperative Minister Rajendra Pal Gautam has instructed the corporation to slash the rates on the directions of Chief Minister Arvind Kejriwal, the statement from Delhi government said.

"With the directions of the Delhi government, the rate of interest for Delhiites to take housing loans has been reduced from 7.45 per cent to 6.75 per cent," said Rajesh Goyal, chairman of the corporation. This interest rate is much lower than that offered by private banks, he added.

The reduction in interest rate will bring down the loan payment instalment from Rs 803 per lakh to Rs 760 per lakh, the statement said. The corporation is planning to soon launch an attractive housing loan package for middle class and weaker sections, it added

Last week, the Delhi government reduced circle rates of residential, commercial and industrial properties by 20 per cent for a period of six months.

Now, people eyeing a home in posh localities of Delhi like Vasant Kunj and Golf Links will have to pay over Rs 1.5 lakh less on per square metre of land as the government slashed circle rates by 20 percent for properties across all categories of areas in the city on Friday.

Delhi Cabinet, which met under the chairmanship of Chief Minister Arvind Kejriwal, decided to reduce circle rates of properties in residential, commercial and industrial categories in the city by 20 percent for six months.

The properties in Delhi are categorised in eight classes from 'A' to 'H', with posh areas falling under 'A' while least developed areas in 'H' category.

The existing circle rate of land in 'A' category areas -- Rs 7.74 lakh per square metre -- will go down to Rs 6.19 lakh per square metre. In 'H' category, the circle rate will be reduced from Rs 23,280 to Rs 18,624 per square meter. The minimum construction cost of commercial properties will also decrease from Rs 25,200 square metre to Rs 20,160 square metre in 'A' category areas. In 'H' category areas, it will go down from Rs 3,960 per square metre to Rs 3.168 square metre.

The minimum rate of built up flats (per square metre) in more than four-storeyed buildings will be reduced from Rs 87,840 to Rs 78,272.

Delhi government expressed hope that the step will help in giving a boost to economy post the COVID-19 pandemic.

The decision to cut down circle rates till September 30, 2021, will also boost the revenue collection of the government, officials said. Against a target of Rs 5,300 crore from property registration in 2020-21, the actual collection has been Rs 1,830 crore by November 2020, as per a report in PTI.