The relaxation in interest rate subvention scheme announced for home loans in budget 2011 is definitely a booster for the segment. Another reason to cheer is the fact that home loans upto Rs 25 lakh will now come under priority sector lending.
Finance Minister, Pranab Mukherjee said that the interest subvention scheme of 1% which was so far given for loans upto Rs 10 lakh will extended to Rs 15 lakh.
The cost of house has been raised from Rs20 lakh earlier to Rs 25 lakh now.
The change has been announced in the budget owing to the surging prices of properties in India.