Home loans: Interest subsidy scheme extended to end-March 2012 ::Business Line

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The 1 per cent interest subvention scheme on housing loans up to Rs 10 lakh has been extended up to March 31, 2012, said a notification issued by the Reserve Bank of India on Wednesday.

Loans sanctioned and disbursed between October 1, 2009 and March 31, 2011 are outside the ambit of the new liberalised scheme and they will be treated as per the old instructions (that is, loans up to Rs 10 lakh with project cost up to Rs 20 lakh), the RBI said.

Banks may continue to claim reimbursement, at present, as per the original scheme.

For claims in respect of the new scheme, revised instructions would follow, the RBI said.

As per the revised scheme, the existing interest subvention of 1 per cent on housing loans was extended to housing loan up to Rs15 lakh, where the cost of the house does not exceed Rs 25 lakh.