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RBI extended to 31st March 2012 a Scheme of 1% Interest subvention on Housing Loans upto Rs. 10 Lakh.

RBI has been extended a scheme of 1% interest subvention on Housing Load upto Rs. 10 Lakhs upto 31st March, 2012. The RBI issued guidelines regarding Housing Loans sanctioned and disbursed between 01st October 2009 and 31st March 2011 are outside and ambit of the new liberalized Scheme and they will be treated as per Old Instructions i.e. loans up to Rs.10.00 lakh with project cost up to Rs.20.00 lakh. The Notification of RBI regarding this scheme is below:

RBI/2011-12/255
RPCD.MSME & NFS. BC.No. 29/06.11.01/2011-2012
November 4, 2011

The Chairman / Managing Director
All Scheduled Commercial Banks (excluding RRBs)
Madam/ Dear Sir,

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

Please refer to our circular RPCD.SME & NFS. BC. No. 62/06.11.01/2010-11 dated April 21, 2011 on the captioned subject. In this connection, it is now clarified as under:

a) The Scheme is extended up to March 31, 2012.
b) Loans sanctioned and disbursed between October 01, 2009 and March 31, 2011 are outside the ambit of the new liberalised Scheme and they will be treated as per old instructions (ie. loans up to Rs.10.00 lakh with project cost up to Rs.20.00 lakh)

Banks may continue to claim reimbursement, at present, as per the original Scheme. For claims in respect of the new Scheme, revisedinstructions would follow.

2. All other terms and conditions of the interest subvention Scheme remain the same.

3. Please acknowledge receipt.

Yours faithfully,
(C.D.Srinivasan)
Chief General Manager

Old Circular

Circular RPCD.SME & NFS. BC. No. 62/06.11.01/2010-11 dated April 21, 2011

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 onhousing 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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