New Delhi: In order to boost the real estate sector, the government on Tuesday said additional measures would be taken to encourage housing activity.
“This sector (housing) will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory,” finance minister Pranab Mukherjee said while winding up the discussion on the interim Budget in Lok Sabha.
The public sector banks (PSBs) have already announced packages for home loan borrowers of up to Rs20 lakh, he said, adding, the Reserve Bank of India (RBI) too has provided a refinance facility of Rs4,000 crore to the National Housing Bank.
Following the announcement of first fiscal in December to bailout various sectors including real estate, the Indian Banks’ Association came up with the special housing loan scheme for up to Rs20 lakh.
The scheme implemented by the PSBs capped interest rate at 8.5% for home loan up to Rs5 lakh.
At the same time rates for Rs5-20 lakh loans was pegged at 9.25% for the first five years.
In addition, the PSBs also waived off processing and pre-payment charges for home loans under these categories and have fixed the margin requirement for loans up to Rs5 lakh at 10%. For the Rs5-20 lakh loan-bracket, the margin was fixed at 15%.