Regulator Reserve Bank of India has notified that the interest subvention scheme by 1% on home loans amounting till Rs 10 lakh will be extended till March 31, 2012.

RBI further notified that for loans which have already been approved or disbursed between the period from October 01, 2009 to March 31, 2011, old loan rules and rates would apply and not the new one.

For all new loans after this period, the revised rules would apply, said the apex bank.