Large interest rates on home loan are causes of low housing demand as result of declining profit curve. But now an individual borrower, who wants to take a home loan up to Rs. 15 lakh, will have to receive 1% interest subsidy approved by the Union cabinet on Tuesday, without exceeding cost of the house Rs. 25 lakh.
The move in this fiscal to offer 1% rate waiver extend to one year up to Rs. 15lakh loan under the scheme of the home loan subsidy will likely to help in raising housing demand, but will cost the exchequer Rs 400 crore. Read more
