Friday, May 6, 2011

Housing Finance to get interest subvention up to Rs.15L

On repayment of the first twelve monthly installments will get the 1% interest subsidy. As there were several announcement made by the finance minister during the Budget session of 2011 now on of them has come true and that is subvention of home loan interest. Reserve Bank of India (RBI) on 21 April said to scheduled commercial banks to impose new norms related to the interest subvention on home loans on the higher priority basis.
As per the new norm that homebuyers will get an interest subsidy of 1% on home loans up to Rs.15L for buying & constructing a home within the overall cost of Rs.25L. This new rule will be available only for those loans which have been sanctioned between 1 April 2011 to 31 March 2012. And this norm will be applicable on the repayment first 12 EMIs, after that borrower will have to make payments as per the applicable interest.
The subsidy will be available on both the fixed and floating interest rate loans, and moreover it will also available in both areas rural and urban both. The scheme would be implemented by scheduled commercial banks and housing finance companies registered with the National Housing Bank (NHB).

Sources:Accommodation Times

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