Union Cabinet has approved 1% interest subvention for home loans up to Rs.15 lakh

By | September 10, 2011

A recent press release said that the Union Cabinet has approved an interest subsidy of 1 per cent for housing loans up to Rs. 15 lakh in order to enhance the housing sector. Currently the home loan limit for interest subsidy is prevailing at Rs. 10 lakh for which the cost of house should not exceed Rs. 20 lakh. The Union Cabinet has increased this ceiling on the cost of the house from Rs. 20 lakh to Rs. 25 lakh.

Under a scheme which was introduced in the year 2009 the customers were allowed an interest subsidy of 1 per cent for borrowing home loan up to Rs. 10 lakh and the customers can avail this interest subvention under the condition that the cost of the house should not exceed Rs. 20 lakh.

Mr. Pranab Mukherjee, the Minister of Finance had announced in his budget speech that the existing interest subsidy for home loans have been liberalized and the customers can avail the home loans up to Rs. 15 lakh with an interest subvention of 1 per cent which was earlier prevailing for Rs. 10 lakh loan and the ceiling on the cost of the house has also been increased from Rs. 20 lakh to Rs. 25 lakh.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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