The Tamil Nadu chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI) on Thursday announced an interest subvention scheme for those purchasing properties from its 45 members.

Addressing a media conference on ‘Fairpro 2010,’ the third in the series of annual property fair of CREDAI-Tamil Nadu, Chairman of Fairpro 2010 Sandeep Mehta said: “The interest subvention scheme will help home buyers acquire properties at low home loan rates starting from 5.99 per cent.” The interest rate on home loans offered by banks and housing finance companies is 8 per cent and more.

The interest subvention will be applicable for the first two years of the repayment of the loan, he said. Mr.Mehta added that it was not a reduced interest rate scheme of the banks or HFCs, but one offered by CREDAI on select properties, including those unsold, ready to occupy. The unsold property in Chennai is worth around Rs.3,000 crore, according to Mr.Mehta.

On Fairpro 2010, he said the three-day property fair at the Chennai Trade Centre, Nandambakkam, will begin on February 19. The interest subvention of 2 to 2.5 per cent by developers would help customers at Fairpro 2010 pay lesser EMI and also assist in selling the unsold housing stocks of the builders, said Mr.Mehta.

Entry fee to the exhibition is Rs.20 per person. The introduction of entry fee is to have only serious buyers at the venue, said T.Chitty Babu, President of CREDAI-Tamil Nadu.

CREDAI expects a sale of more than Rs.175 crore during the three days of the fair, he added. The interest subvention scheme will be available for property sold up to March 31, 2010.

Visitors to the property fair would be able to choose from 250 properties developed by 45 members of CREDAI-Tamil Nadu in the price range of Rs.10 lakh to Rs.8 crore, he said. Around 80 per cent of the properties, predominantly apartments, to be marketed at the fair would be in the price range of Rs.20 to Rs.35 lakh, Mr.Chitty Babu said.

The interest subvention scheme would be available for more than 90 per cent of the properties marketed at the exhibition, he said. Only approved projects would be displayed at the fair, said Mr.Chitty Babu.

He urged customers to approach the customer redressal forum of CREDAI to resolve any dispute with the developer. “We have started to regulate customer grievance redressal. A total of 80 complaints have been resolved till date. We are committed to ethical practices,” he said.

Secretary of CREDAI-Tamil Nadu N. Nandakumar said the interest subvention scheme would lessen the burden of the home buyer and give more ability to repay.