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IREF® - Indian Real Estate Forum > Real Estate Open House > Home Loans in India > Govt plans Diwali gift: 1% home loan rebate
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Old October 25 2011, 06:46 AM   #1
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Default Govt plans Diwali gift: 1% home loan rebate

With the Reserve Bank of India raising interest rates frequently, the Cabinet on Thursday will take a call to give 1 % interest subsidy on home loans up to Rs 15 lakh.

The finance ministry has proposed 1% interest subvention on home loan of Rs 15 lakh with the cost of the house not exceeding Rs 25 lakh. According to government sources, about 30% of total home loans taken, fall within this money bracket.



The scheme has been mooted as an incentive for poor and middle-class families to buy a house at a time when the home loan interest rate range between 10 to 15%. The government proposal, however, makes it clear that the interest subvention will not be applicable on existing home loans, but only for new loans.

Finance minister Pranab Mukerjee had announced in his budget scheme on interest subsidy for home loans and the Cabinet would be considering it on Thursday.
In another pro-people move, the Cabinet will examine a proposal to provide a broadband connection to each of the 2.5 lakh panchayats in India.

Under the scheme, each panchayat will have a cyber centre to provide internet access to villagers. The centres will also work as distance education hubs with a facility of transfer of video content. The government aims to connect all panchayats through broadband with 100 mbps speed by the end of 2012.

A committee headed by Principal Scientific Advisor to Prime Minister Rajagopala Chidambaram had recommended an approach to provide broadband connection to each village through an optical fibre network.

The government also plans to extend the Rashtriya Bima Swastha Yojana to include private sector workers provided the government is not required to pay their premium. Under the scheme, a person gets annual health insurance of up to R3,000 for a nominal premium.

The Cabinet will also consider a proposal for an agreement on joint rapid response to natural disasters in south Asia.
25 10 pg09a

-HT

 
Old October 25 2011, 06:50 AM   #2
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update...........
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Old October 25 2011, 06:53 AM   #3
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That will be some relief. I can see Noida Extn buyers rejoicing some mroe now.

Happy Diwali
 
Old October 25 2011, 09:22 AM   #4
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Home loans of up to Rs 15 lakh may get 1% interest subsidy


To give a boost to the housing sector, the government may increase tomorrow the home loan cap for availing 1% interest subsidy to Rs 15 lakh from existing Rs 10 lakh.

The government may also raise the ceiling on cost of house to Rs 25 lakh from Rs 20 lakh to avail this benefit.

The Union Cabinet in its meeting tomorrow may take decision on the matter, sources said.

Under a scheme introduced in 2009, home loan borrowers now get 1% interest subsidy on bank loans of up to Rs 10 lakh, provided the cost of the house does not exceed Rs 20 lakh.

Finance Minister Pranab Mukherjee in his Budget Speech this year had announced liberalisation of the existing scheme of 1% interest subvention on housing loans of up to Rs 15 lakh, where housing cost is not exceeding Rs 25 lakh.

"To further stimulate the growth in housing sector, I am liberalising the existing scheme of interest subvention on 1% 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 had said.

The Cabinet is also likely to approve increase in India's contribution to International Monetary Fund (IMF), that would provide higher voting rights to the country.

The increase in contribution is part of ongoing quota reforms aimed at providing greater say to the emerging economies.

To give a boost to the housing sector, the government may increase tomorrow the home loan cap for availing 1% interest subsidy to Rs 15 lakh from existing Rs 10 lakh.

The government may also raise the ceiling on cost of house to Rs 25 lakh from Rs 20 lakh to avail this benefit.

The Union Cabinet in its meeting tomorrow may take decision on the matter, sources said.

Under a scheme introduced in 2009, home loan borrowers now get 1% interest subsidy on bank loans of up to Rs 10 lakh, provided the cost of the house does not exceed Rs 20 lakh.

Finance Minister Pranab Mukherjee in his Budget Speech this year had announced liberalisation of the existing scheme of 1% interest subvention on housing loans of up to Rs 15 lakh, where housing cost is not exceeding Rs 25 lakh.

"To further stimulate the growth in housing sector, I am liberalising the existing scheme of interest subvention on 1% 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 had said.

The Cabinet is also likely to approve increase in India's contribution to International Monetary Fund (IMF), that would provide higher voting rights to the country.

The increase in contribution is part of ongoing quota reforms aimed at providing greater say to the emerging economies.

Business Standard


 
Old October 25 2011, 09:23 AM   #5
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Relief for small-home buyers: Govt to give 1% interest subsidy on loans


New DELHI: It may be a case of too little too late. The government is moving to provide some relief to small home loan borrowers by providing a 1% interest subsidy for loans upto Rs 15 lakh, provided the cost of the property does not exceed Rs 25 lakh.

The proposal, which is expected to be approved by the Union Cabinet on Tuesday, is aimed at providing some cheer to households saddled with high inflation and rising EMIs (equated monthly installments).

The move, announced in the budget, is being operationalised now to give a message that the government is trying to address concerns of households ahead of Diwali when low sentiments are affecting spending. The scheme is an improvement of the existing facility where the benefit of interest subsidy is available to loans upto Rs 10 lakh, provided the cost of the property is Rs 20 lakh.

-TOI
 
Old October 25 2011, 09:32 AM   #6
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This is just an eyewash from govt. For name sake, they can say we have reduced the home loan rate by 1%. But, for 1% rebate, the property cost should not be more than 25 lakhs & home loan amount should be less than 15 lakhs.

I don;t think its going to benefit more than 5% of home buyers. It is just for namesake. Govt trying to fool the citizens of this country which is badly bleeding due to corruption & inflation.

Why don;t they cut on govt taxes which a common man is paying (VAT, Sales tax, Income tax etc). Simple answer, this is the money they churn into their pockets through various means. They can't compromise on this.
 
Old October 25 2011, 09:50 AM   #7
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Why dont these crooks at UPA headed by Sonia and that Sardarji stop service tax on under construction properties? This is just eyewash. And there millions of fools in India who still goes for all these eyewash and feels good.
 
Old October 25 2011, 06:03 PM   #8
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Yeh is desh kee budhiman govt(rbi) ka aam admi (not the one on this forum ) ko budhu banane ka budhiman tareeka hai.

Pata naheen yeh itne besharam kaise ho sakte hain aisee thakee/sadee policy declare karne mein.

Is there any govt site which can provide data as what is the % of people having less than 15 Lac loan with Property cost less than 25 lac?

A sheer attempt to make public fool...
 
Old October 25 2011, 11:30 PM   #9
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Quote:
Originally Posted by niru_raut View Post
This is just an eyewash from govt. For name sake, they can say we have reduced the home loan rate by 1%. But, for 1% rebate, the property cost should not be more than 25 lakhs & home loan amount should be less than 15 lakhs.

I don;t think its going to benefit more than 5% of home buyers. It is just for namesake. Govt trying to fool the citizens of this country which is badly bleeding due to corruption & inflation.

Why don;t they cut on govt taxes which a common man is paying (VAT, Sales tax, Income tax etc). Simple answer, this is the money they churn into their pockets through various means. They can't compromise on this.
Agreed. Simply a gimmick by govt to fool ppl & show fake empathy to gain vote bank.

Pranav Mukherjee welcomes the rate hike saying it will help control inflation (which has not been controlled by last 10-15 rate hike cycles in last 1.5 years).
 
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