25-08-2017, 09:32 PM
NATIONAL HOUSING BANK
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Objective
The objective of the Scheme is to provide interest subsidy on housing loan as a measure to generate additional demand for credit and to improve affordability of housing to eligible borrowers in the middle & lower income groups. The Scheme is expected to provide relief to prospective home owners and improve home ownership in the specified target segment.
Eligibility
Interest 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.
Interest subsidy
Subsidy of 1 per cent will be defined as reduction in interest rate by 100 basis points per annum from the existing rate of interest for a particular amount & tenor. It will be applicable to the first twelve instalments of all such loans sanctioned and disbursed during the currency of the Scheme and will be computed for 12 months on the disbursed amount. The subsidy amount will be adjusted (after receiving subsidy from Government of India) in the principal outstanding, irrespective of whether the loan is on fixed or floating rate basis.
Terms for loan and subsidy:-
1. 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.
2. The interest subsidy will be calculated on the interest chargeable at the time of disbursement of the loan.
3. 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).
4. The borrowers may choose fixed or floating rate of interest.
5. The mode of disbursement of the loan will be decided by the lending IAs as per the requirement of the borrowers.
6. 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.
7. 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.
8. It will be the responsibility of the IA concerned to ensure security of the loan amount.
9. The IAs will follow the appraisal, documentation, etc., as per their approved policies and procedures including those for risk assessment.
10. In case a loan is foreclosed before one year the subsidy amount will be received from borrowers and returned to Government through Nodal Agency.