Govt approves interest rate subsidy scheme for houses

The Government today announced interest rate subsidy of one per cent for housing loans up to Rs 10 lakhs and earmarked Rs 1,000 crore for the scheme.

The government on Thursday announced interest rate subsidy of one per cent for housing loans up to Rs 10 lakhs and earmarked Rs 1,000 crore for the scheme.

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The subsidy of one per cent will be available for first 12 EMIs (Equated Monthly Installments) on loans up to Rs 10 lakhs for houses costing less than Rs 20 lakhs, Minister for Information and Broadcasting Ambika Soni told reporters after a meeting of the cabinet.

The cabinet approved the scheme for providing interest rate subsidy on houses in pursuance with the announcement made by Finance Minister Pranab Mukherjee while replying to the debate on the budget for 2009-10 in July.

The interest subsidy will be routed through the commercial banks and the housing finance companies registered with the National Housing Bank, the minister said.