Industry: Give cheaper credit

Industry leaders on Tuesday called upon the government to provide cheaper credit to consumers to boost demand rather than asking it to cut prices.

Real estate giant DLF’s CFO Ramesh Sanka told this newspaper that the sale of new properties had virtually stopped. “Whatever prices had gone up have come down crashing, now there is no scope to cut prices,” he said.

DLF chairman K.P. Singh asked the government to slash interest rates to stimulate growth. “Home mortgage loans should be brought down to 7 per cent. The demand is low because loans right now have an interest rate of 12 per cent,” Mr Singh said. Real estate prices, he said, were already down, and will come down further.

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