Housing loans of Rs 15 lakh to get 1% interest sop

The government on Monday said low-cost housing loans of Rs 15 lakh (Rs 1.5 million) will be eligible for one per cent interest subsidy, which will help in increasing the demand for such housing.

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In his Budget speech, Finance Minister Pranab Mukherjee said he is liberalising the existing scheme of one per cent interest subvention on housing loans up to Rs 15 lakh, where the cost of house does not exceed Rs 25 lakh (Rs 2.5 million).

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The existing interest subsidy is on loans of Rs 10 lakh (Rs 1 million) where the cost of house is Rs 20 lakh (Rs 2 million).

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"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.