BANGALORE: The BBMP is borrowing loan from Housing Urban Development Corporation (HUDCO) to clear loans borrowed from other banks. The BBMP Council on Wednesday approved the proposal to borrow loan from HUDCO. Replying to a query by BBMP JD(S) leader Padmanabha Reddy who raised objections on keeping BBMP property for mortgage to borrow loan from HUDCO, Commissioner Siddaiah said that BBMP had taken a loan of `260 crore from Canara and Syndicate Banks for a period of six years. The interest rate varied from 12 to 13 per cent. “Now, the rate of interest offered by HUDCO is 11 per cent. We are taking the loan for 15 years. The same amount will be paid to these two banks. With premature payment will save Palike `8.24 crore,” he said. Siddaiah clarified that so far BBMP has not sold or kept the property for mortgage. “It is a usual term and condition that any loan provider asks from the loan seeker. Loans are given based on the value of the property . In case, if such circumstances (mortgage) comes in the future, we will definitely bring it to the notice of the Council,” the commissioner said. Padmanabha Reddy recalled that in one of the council meetings, BBMP had opted to borrow loans from nationalised banks and had denied to take from HUDCO.
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