|Home Minister . Mr. P. Chidambaram has announced that the home loan borrowers would continue to get a 1% interest rates subsidy on interests of small ticket home loans. The principal amount of loan has been capped to a maximum of Rs. 15 lakh, given the price of the home itself doesn't exceed Rs. 25 lakh.
"It has been decided to extend the interest subvention scheme for one more year," said Mr. Chidambaram. The proposal in the union budget was approved by the cabinet. The cabinet has allocated Rs. 400 crore towards provisionig for implementing the proposed scheme for the current fiscal.
Under the scheme home loan borrowers stand to save Rs. 14,912 on loans of Rs. 15 lakh; savings on loans of Rs. 10 lakh would be Rs.9,925.
The new scheme is a revision of cabinet's 2009 scheme which provided one percent subsidy on interest rates on loans of up to Rs. 10 lakh with the cost of home capped at Rs. 20 lakh.