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The State Bank of Mysore (SBM) has launched a new home loan scheme aimed at promoting affordable housing among the economically weaker sections (EWS) and the low-income group(LIG) customers.
Termed as Namma Mane, the affordable housing loan scheme from SBM is in line with the recently-launched government mission of ‘Housing for all by 2022’, wherein credit-linked interest subsidy of 6.5 per cent is being provided on loan amount of ₹6 lakh.
“We are one of the first banks to have an affordable housing scheme for the EWS and LIG categories,” said Sharad Sharma, Managing Director, SBM. The Bengaluru-headquartered SBM will be targeting the smaller towns and cities of Karnataka, where it has a major presence, and also neighbouring Andhra Pradesh and Tamil Nadu.
Loan amount The maximum loan that could be taken under the scheme is ₹20 lakh for a tenor of up to 15 years, but the credit-linked interest subsidy of 6.5 per cent is applicable only for the first ₹6 lakh. For the rest of the loan amount, normal housing interest rates will apply.
The effective blended rate under the scheme would range from 2.35 per cent to 7.95 per cent per annum, depending on the loan amount, SBM officials said.
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