The Uttar Pradesh government has decided not to impose any penalty on delayed payment of instalments of home loans for the period between 1 March to 31 August. The state government has also advised the development authorities and the housing board to charge simple interest for the 6-month period.
The decision was taken in the light of the COVID-19 pandemic and related economic constraints.
According to a notification issued by the state housing and urban planning department, the benefit can be availed only by the buyers who will clear their dues by 30 September 2020.
However, rebate on full payment will not be taken into account for the period between March and August. The order also states that the terms and conditions of the agreement signed at the time of the home purchase will remain unchanged.
The UP government had recently extended the deadline for completion of housing projects in the National Capital Region (NCR) from June 2020 to December 2021 at the request of developers.