GDA Cuts Interest Rates: Properties to Be Available at Bank Rates, Buyers to Get Major Relief

Ghaziabad, January 12, 2026:
In a significant relief for homebuyers and investors, the Ghaziabad Development Authority (GDA) has announced a reduction in interest rates on its properties. Following government directives, GDA has decided to link its interest rates with those of the State Bank of India (SBI), making property purchases more affordable for the general public.

Until now, buyers purchasing flats, plots, or commercial properties from GDA were required to pay an annual interest rate of 10.5 percent on installments directly to the authority. Under the new policy, the interest rate will now be aligned with SBI’s prevailing home loan rates, which are currently around 8.7 percent. This results in a direct reduction of nearly 1.8 to 2 percent in interest, offering substantial financial relief to buyers.

An important feature of the new system is that the interest rate will be flexible. This means that if SBI further reduces its lending rates in the future, GDA allottees will automatically benefit from the lower rates without any additional formalities.

Penalty Rate Also Reduced

Along with the interest rate cut, GDA has also softened its stance on delayed installment payments. Earlier, defaulters were charged an additional 3 percent compound interest as a penalty. This default rate has now been reduced to 2 percent, which will benefit those who face temporary financial difficulties and are unable to pay installments on time.

According to official records, a considerable number of allottees had been affected by the earlier stringent penalty norms. The revised policy is expected to provide them with much-needed relief and peace of mind.

How Much Will Buyers Save?

The financial impact of the new decision can be understood through an example. If a buyer purchases a GDA property worth ₹50 lakh, under the old interest rate of 10.5 percent, the annual installment would be approximately ₹5.25 lakh. With the revised interest rate of 8.7 percent, the annual installment comes down to around ₹4.35 lakh.

This translates into a direct saving of nearly ₹90,000 per year. Over a loan tenure of 10 years, the total savings could go up to ₹9 lakh, making property ownership significantly more economical.

Reason Behind the Decision

The state government has implemented this policy across all development authorities in Uttar Pradesh. One of the key reasons behind the move was the large number of unsold flats and plots with GDA. Compared to private banks offering loans at 8–9 percent interest, GDA’s earlier rate of 10.5 percent was seen as uncompetitive.

By bringing its interest rates at par with SBI and reducing penalty charges, GDA aims to boost property sales and encourage more people to invest in its housing and commercial projects.

GDA Vice Chairman Nand Kishore Kalal stated that the new guidelines are expected to provide significant relief to the public and make GDA properties more attractive and affordable.

Overall, the decision is being seen as a buyer-friendly move that could revive demand in the real estate market of Ghaziabad and help many families realize their dream of owning a home.