Housing loan rate scheme to be extended
The government is to provide interest subsidy of up to Rs 14,912 this fiscal for housing loan not exceeding Rs 15 lakh, which came as a relief to small home loan borrowers.
The Cabinet decided to extend by one year the interest subvention scheme of one per cent on housing loans up to Rs 15 lakh where the cost of the house does not exceed Rs 25 lakh for 2012-13. This will cost exchequer Rs 400 crore.
The limit of subsidy for an individual borrower would be Rs 14,912 for a loan of Rs 15 lakh and Rs 9,925 for a loan of Rs 10 lakh, he added.
Demand for housing has fallen sharply due to high interest rate regime since last couple of years and most of the realty firms have witnessed a fall in their profits.
At present, interest rate on home loan varies between 10.5 per cent and 13 per cent. The country’s largest bank SBI is charging 10.75 per cent interest on loans up to Rs 30 lakhs.
To read more real estate news:
SBI home loans show slower growth
SBI to provide home loan at cheaper rates
Source: The Financial Express
Cabinet, Government, High interest rate, home loan, Home loan borrowers, Housing loan, interest subsidy, Realty firms
