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.