Mumbai: The Reserve Bank of India (RBI) on Tuesday extended a 1% interest rate subsidy offered on housing loans of up to Rs.15 lakh until 31 March 2013. The scheme had been originally offered until March 2012.
The government has made a budgetary provision of Rs.400 crore for the scheme for fiscal 2012-13. The subsidy is available on loans offered to borrowers whose house doesn’t cost more than Rs.25 lakh, RBI said in a notification.
“There is good demand for such smaller loans. Almost one-third of our total loan portfolio comprises such loans,” an official with a state-run bank said on condition that neither he nor his bank be named.
The National Housing Bank is the sole coordinating agency for the implementation of the scheme for scheduled commercial banks, regional rural banks and housing finance companies, RBI said.