Reserve Bank of India vide circular DBR.BP.BC.No. 74/08.12.015/2014-15 dated March 5, 2015 on “Housing Loans: Review of Instructions” has allowed banks to add stamp duty, registration and other documentation charges to the cost of the house/dwelling unit for the purpose of calculating Loan to Value (LTV) ratio, in cases where the cost of the house/dwelling unit does not exceed Rs. 10 lakh. This has been done with a view to encourage availability of affordable housing to borrowers from economically.

This was stated by Shri Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha today.

PIB

The post Loan for Low Cost Houses appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The Union Cabinet today approved the proposal for extending the scheme of interest subvention of 1% on housing loans upto Rs.15 lakh where the cost of the house does not exceed Rs.25 lakh for the year 2012-13 and to amend the operational part of guidelines for release of funds.

A budgetary provision of Rs.400 crore has been made for Financial Year 2012-13 for implementing the scheme.

Consequent upon the extension of scheme, the limit of subsidy for an individual borrower would be Rs.14,912 for a loan of Rs.15 lakh and Rs.9925 for a loan of Rs.10 lakh.

The extended scheme will benefit all house loans availed in Financial Year 2012-13.

Background:

The original scheme of 1% Interest Subvention on Housing Loans upto Rs.10 lakh, provided the cost of the housing unit does not exceed Rs.20 lakh was approved by the Cabinet in September, 2009. The scheme was revised by iberalizing the limit of housing loan upto Rs.15 lakh where cost of house does not exceed Rs.25 lakh in financial year 2011-12 which was approved by the Cabinet in October 2011. The scheme is further extended for another year that is financial year 2012-13. National Housing Bank (NHB) is the nodal agency for implementing the scheme both for Scheduled Commercial Banks and Housing Finance Companies.

Source: Pib

The post Central Government: Employees: Interest Subvention of 1% on housing loans appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.