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Scheme of 1% interest subvention on housing loans upto Rs. 10 lakh - Guidelines

RBI/2010-11/481
RPCD.SME & NFS. BC. No. 62/06.11.01/2010-11

April 21, 2011

The Chairman/Managing Director/
Chief Executive Officer
All Scheduled Commercial Banks
(excluding Regional Rural Banks)

Dear Sir

Scheme of 1% interest subvention on housing loans upto Rs. 10 lakh - Guidelines

Please refer to our circulars RPCD.SME & NFS.BC.No.16/06.11.01/2010-11 dated August 9, 2010 and RPCD.SME & NFS.BC.No.52/06.11.01/2010-11 dated February 8, 2011 on the captioned subject.

2. In para 43 of the Union Budget Speech of 2011-12, it has been proposed to liberalise the existing scheme of interest subvention of 1 per cent on housing loans by extending it to housing loan upto Rs.15 lakh where the cost of the house does not exceed Rs.25 lakh from the present limit of Rs.10 lakh and Rs.20 lakh respectively.

3. You are therefore advised to issue necessary instructions to your Controlling Offices and Branch Offices to ensure that these guidelines are implemented immediately. The other terms and conditions of the housing subvention scheme remain unchanged.

4. Please acknowledge the receipt.

Yours faithfully

(C.D.Srinivasan)
Chief General Manager

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