The Indian finance Minister today announced an interest subsidy of 1 per cent for one year on Indian housing loans of up to Rs 10 lakh for properties worth less than Rs 20 lakh. The move has been widely welcomed by indian realtors and home loan companies according to the Business Standard. The measure is expected to cost the exchequer Rs 1,000 crore.

Assuming a monthly saving of Rs 60 per lakh, today’s announcement implies that an Indian borrower saves about Rs 7,200 on a 15-year loan of Rs 10 lakh. The interest rate subvention will be routed through the scheduled commercial banks and the housing finance companies registered with the National Housing Bank.

Enter your email address for the latest Indian real estate news:

Delivered by FeedBurner

Enter your email address:         Delivered by FeedBurner

Tags: Indian housing loans, property in India

This entry was posted on Monday, July 27th, 2009 and is filed under Indian interest rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.