In a move aimed at encouraging low-cost housing, Finance Minister Pranab Mukherjee on Monday proposed that one per cent interest subsidy will be available on home loans of up to Rs. 15 lakh against the current level of Rs. 10 lakh.
He also increased the value of houses eligible for availing the interest subsidy by Rs. 5 lakh to Rs. 25 lakh per unit, in the budget proposals placed before Parliament.
“To further stimulate growth in housing sector, I am liberalising the existing scheme of interest subvention of one per cent on housing loans by extending it to housing loan up to Rs. 15 lakh, where the cost of the house does not exceed Rs. 25 lakh from the present limit of Rs. 10 lakh and Rs. 20 lakh respectively,” he said.
The government also enhanced the housing loan limit to Rs.25 lakh from Rs.20 lakh under priority sector lending, on account of increase in prices of urban residential properties.
