Banks to Provide 1% Sop for Home Loans up to 15 lakhs : RBI

The Reserve Bank of India (RBI) asked banks to give 1% concession on home loans up to Rs 15 lakh. According to RBI’s notification, this scheme has been liberalised with effect from 2011-12 by extending it to home loans up to Rs 15 lakh, where the price of the house does not exceed Rs 25 lakh.

The interest scheme has been extended by the government and will remain in force up to March 31, 2013. Government of India has made a provision of Rs 400 crore under the scheme for the year 2012-13.

For an individual borrower, the limit of subsidy would be Rs 14,912 for a loan of Rs 15 lakh and Rs 9,925 for a loan of Rs 10 lakh. The extended scheme will benefit all housing loan borrowers.