The Finance Minister, Shri Pranab Mukherjee, while presenting the Union Budget 2010-11, in the Lok Sabha today, announced that the allocation for the Rajiv Awas Yojana has been increased by over 700 per cent from last year’s Rs. 150 crore to Rs. 1270 crore for 2010-11. This Yojana for slum dwellers and urban poor was announced last year to extend support to States that are willing to provide property rights to slum dwellers and is now ready to take off.
The Finance Minister announced that the scheme of 1 per cent interest subvention on housing loans up to Rs.10 lakh where the cost of the house does not exceed Rs.20 lakh is proposed to be extended up to March 31, 2011. For this Rs. 700 crore has been provided in the Budget.
The Finance Minister stated that the allocation for urban development is being increased by more than75 per cent from Rs.3060 crore to Rs. 5400 crore in 2010-11. The allocation for Housing and Urban Poverty Alleviation is being raised from Rs. 850 crore to Rs. 1,000 crore in 2010-11.
I have availed home loan way back in 2004 from Indian Bank .As per above RBI circular , 1% interest subvention on housing loans upto Rs:10.00 lacs has been granted as per GOI budget speech . Can you please advise its applicability , i.e it is for the new loans or the older ones also. Bank is not clarifying on the above .
regards
Please provide me the circular of RBI in respect of the scheme of 1 per cent interest subvention on housing loans up to Rs.10 lakh where the cost of the house does not exceed Rs.20 lakh which is extended up to March 31, 2011.