Home loan seekers can save up to Rs 10,000 on EMIs

Quotes with Resistance & Support

Market Information

Home loan seekers can save up to Rs 10,000 on EMIs

This article was posted on Sep 12, 2009 and is filed under Press Releases

Home loan seekers can save up to Rs 10,000 on their monthly repayments for one year as the government today approved one per cent interest subsidy for houses that cost less than Rs 20 lakh.

Want to pay less for your dream home? Here’s how!
Most Read
Fares on other airlines soar as Jet flights remain on ground
Bharti Airtel denies agreement reached with MTN
Mid-size companies back to lateral hiring
SC to hear on alleged tax evasion by PwC on December 9
Gold ETFs at new peak as prices soar
Honda Siel’s new Civic @ Rs 11.8 lakh
Follow us on Twitter

Aimed at promoting low-cost housing, the subsidy will be available for loans up to Rs 10 lakh, provided the cost of the dwelling unit does not exceed Rs 20 lakhs, Minister of Information and Broadcasting Affairs Ambika Soni said after a meeting of the union cabinet which cleared the proposal of theFinance Ministry.

“It is expected that cut in interest rates should reduce Equated Monthly Installments (EMIs) of borrowers and create additional demand for housing, particularly in the low cost category”, she said, adding the scheme would cost the exchequer Rs 1,000 crore and benefit about 10 lakh borrowers.

One per cent interest subsidy for Rs 10-lakh home loans

Besides, she added, the move “in turn should stimulate demand in the construction industry as well as industries such as steel and cement having employment and income multipliereffect.”