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Home loan borrowers will get interest subsidy at the rate of one per cent for loans up to Rs 15 lakh taken during the current financial year, that is, 2012-13. However, the condition is that the cost of house should not exceed Rs 25 lakh.
The Home Minister, Mr P. Chidambaram, while announcing the Cabinet decisions, said, “It has been decided to extend the interest subvention scheme for one more year”. This was proposed in the Budget and now the Cabinet has approved the operational part of guidelines for the release of funds.
Consequent to the extension of the scheme, the limit of subsidy for an individual borrower would be Rs 14,912 for a loan of Rs 15 lakh and Rs 9,925 for a loan of Rs 10 lakh. A budgetary provision of Rs 400 crore has been made for financial year 2012-13 for implementing the scheme.
The original scheme of one per cent interest subvention on housing loans up to 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 liberalising the limit of loan up to Rs 15 lakh, and increasing the cost limit to Rs 25 lakh in October last year.
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