KHB to Develop New Layout Jigani at a Cost of Rs 3,000 crore

The Karnataka Housing Board (KHB) will develop a new layout called Swami Vivekananda Nagar near Jigani at a cost of Rs 3,000 crore to allot 50,000 sites and houses.


The Cabinet has approved the proposal and we will acquire around 2,500 acres of land for the
project.

Minister for Housing V Somanna said “We are spending Rs 450 crore to provide drinking water for the proposed layout. We are also planning to acquire 400 acres of land near Devanahalli for allotting houses to the applicants. We are planning to complete both the projects at the earliest.”

When asked about the land acquisition problems that have been plaguing the five layouts that were supposed to be developed around the city, Somanna said, “The KHB is planning to purchase the land directly from the land owners at the market price. It will be fixed by the local DCs.”

The KHB has 23 ongoing projects at different places in the State and has invited applications for allotment of 296 houses at Sir M V Layout, 808 houses both near Kengeri, 384 houses in Suryanagar and 832 houses at KHB Green Park in Gulbarga. It has constructed 1, 2 and 3 BHK houses in these areas.

No Penalty on Pre-Closure

The Reserve Bank of India (RBI) has directed all nationalised banks not to impose penalty  for pre-closure of housing loans. The notification issued by the RBI has brought some smile of middle class families who now have the opportunity to shift their costly and high interest loans to other banks, particularly HUCO, a public sector entity.

RBI strictly disallowed banks from charging foreclosure charges / pre-payment penalties on
home loans on floating interest rate basis. “The removal of foreclosure charges/prepayment
penalty on home loans will lead to reduction in the discrimination between existing and new
borrowers and competition among banks will result in finer pricing of the floating rate home
loans,” RBI said in a notification to banks. Though many banks have, in the recent past,
voluntarily abolished pre-payment penalties on floating rate home loans, “there is a need to
ensure uniformity across the banking system,” an official said.

We also advise you to apply for housing loans in the public sector banks. Banks like HUDCO
offers loans at 10 per cent rate of interest up to Rs 26 lakh. Moreover, public sector banks
charge less consultancy fee than private banks in the country. But seek suggestions from
financial experts before obtaining loans either housing or any other loan.

One has to think ten times while fixing the size of the house loan. Larger the size of the loan,
more interest rate burden as well more monthly repayment. Like size of a house required
differs from one family to other, the amount of loan is also differs from one to other family.
Therefore, before buying property, it is advisable to appoint a solicitor to inspect the original
title documents of the property being purchased and later apply for housing loan.