The Economic Development Corporation is set to offer housing and vehicle loans for employees of state government, besides professionals and small businesses.
Under the scheme the organisation will offer home loans of up to Rs 25 lakh to permanent government and corporations employees.
Housing loans will be offered for new purchases and extension/ renovation of existing property holdings.
The rate of interest on home loans will vary from 10 to 12 percent, payable over a period of 20-years.
The organisation will also offer professionals and small enterprises loans of up to Rs 20 lakh.
Besides, vehicle loans amounting up to Rs 5 lakh will be offered at an interest rate of 15 percent, payable over a period of five years or until the attainment of superannuation age. In the later case, the floating interest rate will be applicable.
As compared to loans offered by other players in the market, the rate on loans offered by EDC is high. However, the EDC loan scheme considers spouse's income to calculate loan eligibility. In other words, joint loan option is made easier under this scheme.
The rate on home loans offered by State Bank of India stands at 8 to10 percent. Its private peer HDFC is offering home loans at 9.25 percent and vehicle loans at 12.75 percent.