Home loans up to Rs 15 lakh get one percent rate waiver

New Delhi, July 4 (ANI): The Union Cabinet has approved the proposal for extending the scheme of interest subversion of one percent on housing loans up to 15 lakh rupees for the year 2012-13. The cost of the house should not be exceed 25 lakh rupees.

Briefing the decision of Cabinet meeting to media here, Union Home Minister P.Chidambaram said that a budgetary provision of four hundred crore rupees has been made for financial year 2012-13 for implementing the scheme.

"The extended scheme will benefit all housing loans availed in financial year 2012-13," he added.

Consequent upon the extension of scheme, the limit of subsidy for an individual borrower would be Rs.14,912 for a loan of Rs.15 lakh and Rs.9925 for a loan of Rs.10 lakh.

The original scheme of one per cent Interest Subvention on housing loans upto Rs.10 lakh, provided the cost of the housing unit does not exceed Rs.20 lakh was approved by the Cabinet in September, 2009.

The scheme was revised by iberalizing the limit of housing loan upto Rs.15 lakh where cost of house does not exceed Rs.25 lakh in financial year 2011-12 which was approved by the Cabinet in October 2011.

The scheme is further extended for another year that is financial year 2012-13. National Housing Bank (NHB) is the nodal agency for implementing the scheme both for scheduled commercial banks and housing finance companies. (ANI)