The liberalised scheme for 1% interest subsidy by government on housing loans up to Rs15 lakh will be available for the borrowers whose loans were sanctioned and disbursed from April this year, reports PTI. The new scheme under which the loan limit for interest subvention was raised to Rs15 lakh, subject to the total housing cost of Rs25 lakh, will remain valid up to March 2012, the Reserve Bank of India (RBI) said today.
“Loans sanctioned and disbursed between 1 October 2009, and 31 March 2011 are outside the ambit of the new liberalised scheme...” the RBI said in a communication to all scheduled commercial banks. The interest subvention scheme had started from October 2009 and was originally available on loans up to Rs 10 lakh, subject to a total housing cost of Rs20 lakh. However, as proposed in the union Budget for the current fiscal, the Cabinet had raised the limit on 25th October to Rs15 lakh and Rs25 lakh, respectively.
With the increase in housing loan ceiling, the limit of subsidy for an individual borrower would go up to Rs14,865 per year for a loan of Rs15 lakh from the earlier limit of Rs9,910 for a loan of Rs10 lakh. A budgetary provision of Rs500 crore has been made for the fiscal 2011-12 for implementing the scheme. The government has designated the National Housing Bank as the nodal agency for implementing the scheme both for scheduled commercial banks and housing finance companies