BUDGET TO SHARE SUB-10 L HOME LOAN BURDEN
The government is working on a proposal to subsidise housing loans below Rs 10 lakh by asking banks to give loans to individuals and builders at a lower interest rate for five years. Builders will get the loan only for housing projects that are under construction.
The government will compensate the banks by providing money from the Union Budget. The committee of secretaries working on the bailout package for domestic industry has asked the ministry of housing to prepare a detailed proposal which will be examined by the prime minister's apex committee early next week. "As much as 73% of total housing in the country is valued at Rs 7.5 lakh and below," a government official said.
The PM's apex committee — which includes the finance minister, the commerce minister, RBI governor and the Planning Commission deputy chairman — is expected to finalise an incentive package for industry. Speaking to ET, the government official said the committee of secretaries (CoS) had proposed to provide housing loans at 8% interest, a subsidy of 1-3%. Today, public sector banks give home loans at 9-11% interest rates.
The CoS will focus on ways to boost demand for housing so that steel, cement and capital goods also get a fillip. "Housing sector needs support immediately… within two months. Otherwise, it will be too late," the official said.
The meeting of CoS with the Cabinet secretary on the package scheduled for Thursday had to be postponed as the Cabinet secretary had to rush to Mumbai to review the situation in the city under terrorist attack.
Courtesy:- ET dtd:- 28th Nov. 2008
Any further info log on to http://www.zameen-zaidad.com.
The government will compensate the banks by providing money from the Union Budget. The committee of secretaries working on the bailout package for domestic industry has asked the ministry of housing to prepare a detailed proposal which will be examined by the prime minister's apex committee early next week. "As much as 73% of total housing in the country is valued at Rs 7.5 lakh and below," a government official said.
The PM's apex committee — which includes the finance minister, the commerce minister, RBI governor and the Planning Commission deputy chairman — is expected to finalise an incentive package for industry. Speaking to ET, the government official said the committee of secretaries (CoS) had proposed to provide housing loans at 8% interest, a subsidy of 1-3%. Today, public sector banks give home loans at 9-11% interest rates.
The CoS will focus on ways to boost demand for housing so that steel, cement and capital goods also get a fillip. "Housing sector needs support immediately… within two months. Otherwise, it will be too late," the official said.
The meeting of CoS with the Cabinet secretary on the package scheduled for Thursday had to be postponed as the Cabinet secretary had to rush to Mumbai to review the situation in the city under terrorist attack.
Courtesy:- ET dtd:- 28th Nov. 2008
Any further info log on to http://www.zameen-zaidad.com.
