ID :
34464
Mon, 12/08/2008 - 11:43
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Shortlink :
http://m.oananews.org//node/34464
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Special package for home loan borrowers up to Rs 20 lakh: Govt
New Delhi, Dec 7 (PTI) In order to boost the troubled
housing sector, the Indian government Sunday said public
sector banks would soon unveil a package for those seeking
home loans of up to Rs 20 lakhs and promised measures that
would accelerate the "growth trajectory".
"Public sector banks will shortly announce a package for
borrowers for home loans in two categories -- for loans of up
to Rs 5 lakhs and Rs 5-20 lakhs," an official statement said,
middle-class segments.
The government pointed out that there is a large unmet
demand for housing in the country, especially for middle and
low income groups.
Stating that housing is an important source of employment
and generates demand for critical sectors, the Centre said
that the housing sector would be kept under a "close watch"
and promised that additional measures would be taken, as
necessary, to promote an accelerated growth trajectory.
The demand in residential segment has declined in the
last six months on account of high interest rates on housing
loans and steep rise in property prices during last two to
three years, experts said.
The government highlighted the Reserve Bank of India's
decision to provide refinance facility of Rs 4,000 crore to
National Housing Bank.
"In addition, one of the areas where plan expenditure can
be increased relatively easily is the Indira Awas Yojna," the
statement said.
Expressing disappointment on the economic package for
housing sector, Parsvnath Developers Chairman Pradeep Jain
said: "Package for home loans borrowers is an eyewash. It is
not going to spur demand".
To give a filip to the real estate sector, particularly
housing sector, the Reserve Bank of India had yesterday said
that banks can classify housing loans up to Rs 20 lakh as
"priority sector" advances, subject to a ceiling of five
percent of their total priority sector target.
Loans by banks to housing finance companies (HFCs) for
on-lending to individuals for purchasing/constructing dwelling
units may be classified under the priority sector, provided
the housing loans granted by HFCs do not exceed Rs 20 lakh per
dwelling unit per family, RBI had said in a statement.
The special dispensation for treating loans to HFCs as
priority sector advances will boost lending to the housing
sector, it added. PTI MJH
DEP
NNNN
housing sector, the Indian government Sunday said public
sector banks would soon unveil a package for those seeking
home loans of up to Rs 20 lakhs and promised measures that
would accelerate the "growth trajectory".
"Public sector banks will shortly announce a package for
borrowers for home loans in two categories -- for loans of up
to Rs 5 lakhs and Rs 5-20 lakhs," an official statement said,
middle-class segments.
The government pointed out that there is a large unmet
demand for housing in the country, especially for middle and
low income groups.
Stating that housing is an important source of employment
and generates demand for critical sectors, the Centre said
that the housing sector would be kept under a "close watch"
and promised that additional measures would be taken, as
necessary, to promote an accelerated growth trajectory.
The demand in residential segment has declined in the
last six months on account of high interest rates on housing
loans and steep rise in property prices during last two to
three years, experts said.
The government highlighted the Reserve Bank of India's
decision to provide refinance facility of Rs 4,000 crore to
National Housing Bank.
"In addition, one of the areas where plan expenditure can
be increased relatively easily is the Indira Awas Yojna," the
statement said.
Expressing disappointment on the economic package for
housing sector, Parsvnath Developers Chairman Pradeep Jain
said: "Package for home loans borrowers is an eyewash. It is
not going to spur demand".
To give a filip to the real estate sector, particularly
housing sector, the Reserve Bank of India had yesterday said
that banks can classify housing loans up to Rs 20 lakh as
"priority sector" advances, subject to a ceiling of five
percent of their total priority sector target.
Loans by banks to housing finance companies (HFCs) for
on-lending to individuals for purchasing/constructing dwelling
units may be classified under the priority sector, provided
the housing loans granted by HFCs do not exceed Rs 20 lakh per
dwelling unit per family, RBI had said in a statement.
The special dispensation for treating loans to HFCs as
priority sector advances will boost lending to the housing
sector, it added. PTI MJH
DEP
NNNN
