1 % home loan subsidy
Deepak
(Querist) 26 December 2012
This query is : Resolved
Dear Sir,
I have taken loan in Dec-12 and wants to know can I elligible for 1% subsidy in intrest for 12 month or only up to March-12
Regrads
Deepak Jain
ajay sethi
(Expert) 26 December 2012
nterest subvention of 1 percent will be available on housing loans upto 10 lakh to individuals for construction/purchase of a new house or extension of an existing house / resale of a flat or House, provided the cost of construction/price of the new house/extension does not exceed 20 lakh. For FY 2011-12 interest subvention of 1% will be available for housing loans upto 15 lakh, provided the cost of house does not exceed 25 lakh are eligible under the Scheme. All such loans sanctioned and disbursed, during the period of the Scheme shall be eligible for the said interest subsidy.
Duration of the Scheme – The Scheme is in operation for a period starting from 1st October, 2009 to 31st March, 2012.
ajay sethi
(Expert) 26 December 2012
terms for loan and subsidy:-
The interest subsidy of 1 percent per annum will be admissible for the first year on the amount sanctioned and disbursed against the eligible housing loans. In case the loan amount is disbursed in parts (instalments), the interest subsidy will be calculated for one year and claimed separately for every installment of the loan disbursement falling within the operating period of the Scheme.
The interest subsidy will be calculated on the interest chargeable at the time of disbursement of the loan.
The agreed rate of interest would be arrived at by the IAs keeping in view the NHBs guidelines, if any, for loans upto 10 lakh (for FY 2011-12 upto 15 lakh).
The borrowers may choose fixed or floating rate of interest.
The mode of disbursement of the loan will be decided by the lending IAs as per the requirement of the borrowers.
The IAs will deduct the subsidy amount from the principal loan amount of the borrower (after receiving it from Nodal agency) and charge interest on the net amount of loan at the agreed rate of interest.
The amount of reduction in the principal amount as a result of interest subsidy will be explained to the borrower by the SCBs/HFC officials. IAs will provide each borrower, covered under the Scheme, a statement which will make him/her understand the amount given as subsidy, how the subsidy has been adjusted and the impact of the subsidy on her/his EMIs.
It will be the responsibility of the IA concerned to ensure security of the loan amount.
The IAs will follow the appraisal, documentation, etc., as per their approved policies and procedures including those for risk assessment.
In case a loan is foreclosed before one year the subsidy amount will be received from borrowers and returned to Government through Nodal Agency.
In case of default/account turning NPA the subsidy will be provided to borrower on pro-rata basis and remaining subsidy will be returned to Government of India through nodal agency. In case account turns NPA after 12 months, subsidy would not be returned, as Scheme provides 1% interest subsidy for 12 months only.
The benefit of interest subvention is restricted to only one housing unit for a single eligible borrower.
R.K Nanda
(Expert) 27 December 2012
no more to add.
