DDA Housing Scheme: Some banks agree to finance registration fee

After the Delhi Development Authority (DDA) held several meetings with them, some banks are likely to finance the registration fee for DDA's newly launched 2017 housing scheme, while others continue to be hesitant.

Earlier, eight banks that DDA had tied up with announced that they will not be able to finance the fees.

However, some senior DDA officials took control of the situation by talking to the banks and managed to partially resolve the issue.

"We hope that all banks will agree to finance the scheme because it is for the public," said a senior DDA official.

The official also admitted that the banks are also hesitant due to the possibility of losses they may incur.

"The banks have explained us the problems and we have assured that the issues would be discussed with the Lieutenant Governor (the chairman of DDA)," the official said.

He pointed out that the banks want DDA to remove the clause which says 25 per cent of the registration fee would be confiscated if houses are returned.

"We have kept this clause from our previous experience of losses. But if banks have a problem with this, we can negotiate," he said.

So far, DDA has received 5,500 applications and sold nearly 60,000 forms.

"The number is low, but we will reach the expected figure," the official added.

Many homebuyers became disinterested after knowing that banks won't provide finance.

42-year-old IT professional Rishi Sharma, who came to the DDA office to apply for the housing scheme, said: "I approached two banks but they are not ready to finance. I will have to return without applying for the scheme if I do not get the money from them."

Sharma added that DDA officials assured him of help, asking him to return next week.

Meanwhile, Central Bank of India started financing the fees from this week.

Other banks are also likely start from next week, when DDA will meet the remaining banks to settle the issue.

"We expect all banks to support us so that the scheme reaches every people," the official said.