Home loan may get priority tag, rates likely to dip to 8 per cent

New Delhi: In order to boost real estate development, the government is planning to extend priority sector lending benefits to the housing sector and work on bringing down the interest rates to 7-8 per cent.

“We are for the entire housing sector to come under priority sector lending and working towards it. I have met the Prime Minister on this and the PM is going to have a meeting of banking and housing secretaries to discuss the proposal,” urban development and housing and poverty alleviation minister M. Venkaiah Naidu on Thursday said here while releasing a report on the Smart City project organised by PHDCCI.

The NDA government is currently working to create 100 Smart cities across the country which will be equipped with 24-hour water and power supply, quality education, clean air, efficient urban transport system among other services.

Mr Naidu said the interest rates should also be brought down to 7-8 per cent to boost the housing sector. At present, the interest rates are generally in double digits. He will also be holding a two-day meeting with all state governments.