Cabinet shortly to discuss over raising limit of housing loans
The central government is considering to raise the limit of housing loans eligible at interest of one per cent to Rs 15 lakh from the current Rs 10 lakh. The proposal is likely to be discussed in the Union Cabinet this week.
The move aims towards activating real estate growth as a major contributor for the overall economic growth.
In the Union Budget 2012-2013, former finance minister Pranab Mukherjee had announced the scheme of interest subvention for low-cost housing, according to which, one per cent interest subvention was for up to Rs 10 lakh of loans, provided housing cost did not exceed Rs 25 lakh.
The prices of houses are pretty high nowadays owing to certain factors like high interest rate, high input costs, high cost of land, etc. Only few developers offer housing in the Rs 25-lakh category.
Developers offering units in the affordable segment are Tata Housing, the Usha Martin Group, Mahindra and Mahindra, and Jerry Rao’s Value and Budget Housing Corporation.
The data of this fiscal raise doubts on even the possibility of a 7.6 per cent growth rate for this financial year.
To read more real estate news:
Government likely to announce interest subsidy on home loans
Revenues of realty firms witness downtrend
Source: Business Standard
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