FM boosts low-cost housing with 1% subsidy

In his Budget speech, Finance Minister Pranab Mukherjee said that he is liberalising the existing scheme of one per cent interest subvention on housing loans up to Rs 15 lakh, where the cost of the house does not exceed Rs 25 lakh.

The existing interest subsidy is on loans of up to Rs 10 lakh where the cost of house is Rs 20 lakh.

"To further stimulate the growth in housing sector, I am liberalising the existing scheme of interest subvention on 1 per cent on housing loans by extending 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 20 lakh respectively," Mukherjee said.

PTI