Mumbai Property News: CM Fadnavis Waives 8.5% Interest on Self-Redevelopment Premiums Till March 2026

On February 25, Chief Minister Devendra Fadnavis announced that the 8.5% interest on the premium for self-redevelopment projects would be waived. He stated that this will apply to all such projects whose applications are received by March 2026.

The BMC charges an interest rate for premium payments made in installments, as permitted by the government. Fadnavis learned of the issue while he was in Kandivali to inaugurate a residential building that locals had renovated using the self-redevelopment method.

Fadnavis mentioned that construction will commence just two to three years after payment. Residents will be responsible for covering both the premium and bank interest. The fee will be waived only for self-redevelopment projects for three years to alleviate the financial burden. This measure aims to prevent misuse of the plan, with a requirement that the project be finalized within five years.

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According to the CM, 1,500 proposals for self-redevelopment have been received so far. Only 42 of the 45 ideas that were submitted to Mhada were approved. "The rate of approvals is not satisfactory to me. The plan is to close brokers' stores," he said. He warned that if anyone obstructed self-improvement initiatives, they would lose their employment. Fadnavis stated that the plan would fall under the purview of the Right to Services Act and that the goal would be to guarantee that there would be no human interaction.